Friday, December 19, 2008

GMR plans to buy coal mine in Indonesia

GMR bullish on power; plans to buy coal mine in Indonesia-The Economic Times
Printed from The Economic Times

GMR bullish on power; plans to buy coal mine in Indonesia
19 Dec 2008, 1318 hrs IST, PTI
NEW DELHI: GMR Group plans to buy 100-150 million tonne capacity coal mine in Indonesia to feed 1,500 megawatt power generation capacity for
20 years.

The deal is likely to strike within three months. "The company has plans to set up a 1,000 to 1,500 megawatt coal fired thermal power plant on the western coast. The company has already done the land survey in Maharashtra and Gujarat," GMR Group Chief Financial Officer Subba Rao Amarthaluru told reporters here on Friday.

Divulging details about the company's foray into power sector, he said, "The company would increase its domestic power generation capacity from 800 megawatt to 3,000 megawatt by 2013."

He also said that the company's 1,050 megawatt coal fired power plant in Orissa would be operational by March 2010.

When asked about the future investment plans, he remained tight-lipped and said that amidst the global financial crisis, power sector is a potential sector where there is a scope of investment and higher returns considering the EPC cost coming down to around Rs four crore per megawatt from the earlier Rs five crore to Rs six crore.

He added, "Power is an essential commodity, you cannot postpone the demand. Considering the huge demand of power in our country, this sector will yield higher returns in short term".

On the air passenger traffic, he said it is down one per cent in Delhi and five to six per cent in Hyderabad and this will further come down.

Copyright © 2008 Bennett Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service

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