The Hindu : Business : KSK Energy to set up power plant

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Friday, May 11, 2007
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KSK Energy to set up power plant

Special Correspondent

HYDERABAD: KSK Energy Ventures Ltd, a Hyderabad-based company listed on the London Stock Exchange, will be setting up a 540 MW thermal power project at Warora in Chandrapur district of Maharashtra.

Giving details of the Rs. 2,400-crore project here on Thursday, S. Kishore, Director, said a special purpose vehicle (SPV) — Wardha Power Company Pvt Ltd (WPCPL) — would be launched on May 12.

KSK would bring one 270 MW unit of the WPCPL operational by May 2009, while the remaining 270 MW would be synchronised by the end of the same year. The project would have four modules of 135 MW each.

The WPCPL had entered into a power purchase agreement for 270 MW with Tarapore-based Viraj Profiles Ltd . KSK has tied up with Gujarat Mineral Development Corporation (GMDC) for coal linkage. GMDC would retain 26 per cent of equity in the power project. The financial closure was achieved with term loans from Rural Electrification Corporation, HUDCO and Indian Overseas Bank. KSK, with its venture partner, Lehman Brothers, and Viraj Profiles would pump in the equity.

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