Moser Baer Power & Infrastructure’s proposed 3,800 MW power projects are held up due to absence of coal linkage, which has also made company’s plans of fund raising difficult, a top official said.
The company has plans to generate 5,000 MW at an investment of Rs 25,000 crore in the next five years. Of this, it is executing 1,200 MW for which coal has been made available.
“Right now, we are executing the projects of 1200 MW which have fuel linkage but the rest is awaiting fuel.
“3,800 MW is awaiting fuel tie-up, we have acquired all the land required to build this capacity, have taken all the permissions, environment clearance has been partly done but we do not have coal,” L.R. Shrivastava, CEO, Moser Baer Power & Infrastructure Ltd told PTI.
He was speaking on the sidelines of an IPPAI event here.
The company plans to get this 5,000 MW up and running in the next 5 years but is finding it difficult to arrange debt.
“We are already drawing loans for the 1,200 MW under construction capacity and the revenues generated through that plant will be utilised for building other plants, but we cannot get loans because there is no coal,” Shrivastava said.
Asked whether the company will import coal, Shrivastava said this could be done only if the company is able to sell power generated from that costlier coal.
The company is also operating a coal mine in Chhattisgarh. The work on the mine started in 2009 and the mine is expected to commence production by December, 2013.
“We are developing this 70 million tonnes coal block in joint venture with Chhattisgarh Mineral Development Corporation, we are 49 per cent partners and we are driving the development,” he said, adding that the company is looking at more states as options (for mining purposes).
“We are concentrating predominantly on Chhattisgarh, Madhya Pradesh, Jharkhand,” he said when asked about the states the company is looking at exploring for developing coal mines.
“It is very difficult to work in Odisha and also we have limited resources so we are concentrating on these three states,” he said.
Getting regulatory clearances for mining projects in Odisha has become difficult for the companies lately due to local opposition and environment issues.
“We are a nascent company and do not have deep pockets therefore cannot have an asset and get stuck. At the same time we are not completely ruling out Odisha, we have a site identified in Odisha for a 2,000 MW project, our hands are full at the moment and so we are exercising caution,” he said.
Moser Baer Power & Infrastructure Ltd was incorporated in 2008 with the strategy to foray into thermal power and infrastructure.