Thursday, March 20, 2008

Kribhco Plans To Set Up Rs 4,000 Cr Power Project In Bihar

Bhubaneswar: Krishak Bharati Co-operative (Kribhco), Gujarat-based fertiliser cooperative major, is looking at commissioning a 1,000 mw joint venture project in Bihar in association with the Bihar State Electricity Board (BSEB) with an investment of Rs 4,000 crore.

Kribhco''s first power JV, a 1,000 mw project in association with the Chhattisgarh State Electricity Board (CSEB), is on track. As in the case of the Chhattisgarh project, Kribhco will hold 51 per cent in the second project also. Around 1,000 acres will be required for setting up the power plant. Additionally, Kribhco is foraying into other businesses such as setting up a jetty at its Hazira power plant and has entered into a tie-up with the Railways for container services. The projected will be funded mainly through loans from banks and financial institutions. Formation of a special purpose vehicle could also be on the cards for the Bihar venture. Kribhco authorities have also initiated dialogues with Power Trading Corporation for their foray into power selling. Kribhco plans to set up the Chhattisgarh power plant by the end of 11th Plan. As for the Bihar venture, it is yet to fix any date.

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