State-run National Aluminium Co Ltd will bid for two of India’s upcoming 4,000 megawatt power plants in the eastern states of Orissa and Chhattisgarh, a senior company executive said.
“We will form a consortium for the bid. Preliminary talks have been held with NMDC Ltd and Neyveli Lignite Corp Ltd for a joint venture,” NALCO’s director of finance, BL Bagra said.
So far India has only awarded its 4,000 MW power plants—also called ultra mega power projects, or UMPPS—to private sector companies. The country plans to build at least 16 UMPPs to boost electricity generation and tackle acute power shortages.
Four such projects have been awarded so far, one to Tata Power Co and three to Reliance Power Ltd.
NALCO, India’s second-largest aluminum producer by volume, is planning a major foray into the power sector, with plans to invest in coal-fired, wind and nuclear power plants.
It currently operates a 1,200 MW captive power plant in Orissa and plans to set up another 1,250 MW unit in the country. It also plans to set up a supercritical thermal power plant, which is more energy-efficient than conventional power plants, with a capacity of 1,980 MW in the Dhenkanal district of Orissa, Bagra said.
NALCO has previously indicated its intent to sign a joint venture agreement with state-run Nuclear Power Corp to invest in a 1,400 MW nuclear power plant in the western state of Gujarat.
“We are bullish on India's power sector,” Bagra said, adding that its foray into the power sector will be mainly funded from its cash reserves, which currently stand at about 44 billion rupees ($982.1 million).
The power ministry recently extended the last date for submitting bids for the Chhattisgarh UMPPs to March 8, while the last date for the Orissa UMPP is January 30. Bagra said the company is waiting for environmental and other clearances for the coal blocks allocated to the UMPPs before it finalizes details of the consortium's bid.
“The consortium can have three to four companies. We plan to hold the single largest shareholding in the joint venture company,” he said.
India's installed power generation capacity at the end of November was 167 gigawatts and power producers aim to add 113 GW over the next seven years.
“We will form a consortium for the bid. Preliminary talks have been held with NMDC Ltd and Neyveli Lignite Corp Ltd for a joint venture,” NALCO’s director of finance, BL Bagra said.
So far India has only awarded its 4,000 MW power plants—also called ultra mega power projects, or UMPPS—to private sector companies. The country plans to build at least 16 UMPPs to boost electricity generation and tackle acute power shortages.
Four such projects have been awarded so far, one to Tata Power Co and three to Reliance Power Ltd.
NALCO, India’s second-largest aluminum producer by volume, is planning a major foray into the power sector, with plans to invest in coal-fired, wind and nuclear power plants.
It currently operates a 1,200 MW captive power plant in Orissa and plans to set up another 1,250 MW unit in the country. It also plans to set up a supercritical thermal power plant, which is more energy-efficient than conventional power plants, with a capacity of 1,980 MW in the Dhenkanal district of Orissa, Bagra said.
NALCO has previously indicated its intent to sign a joint venture agreement with state-run Nuclear Power Corp to invest in a 1,400 MW nuclear power plant in the western state of Gujarat.
“We are bullish on India's power sector,” Bagra said, adding that its foray into the power sector will be mainly funded from its cash reserves, which currently stand at about 44 billion rupees ($982.1 million).
The power ministry recently extended the last date for submitting bids for the Chhattisgarh UMPPs to March 8, while the last date for the Orissa UMPP is January 30. Bagra said the company is waiting for environmental and other clearances for the coal blocks allocated to the UMPPs before it finalizes details of the consortium's bid.
“The consortium can have three to four companies. We plan to hold the single largest shareholding in the joint venture company,” he said.
India's installed power generation capacity at the end of November was 167 gigawatts and power producers aim to add 113 GW over the next seven years.
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