Monnet Ispat mulls setting up 660 MW plant in Odisha

Once set up, this facility will take the company's generation capacity to nearly 2,000 MW.

New Delhi: Monnet Ispat and Energy is mulling setting up a 660 MW thermal power plant at Angul in Odisha at an investment of around Rs 4,000 crore.

Once set up, this facility will take the company's generation capacity to nearly 2,000 MW.

"We are implementing a 1,050 MW power project at Angul in Odisha. This should get up and running by June-September, 2013. We plan 660 MW at the same site. The idea is developing now. We are talking to Odisha government," Monnet Ispat and Energy's Chairman and Managing Director Sandeep Jajodia said.

He further said the project entails an investment of Rs 4,000 crore, going by the calculation of Rs 6 crore per MW.

Jajodia, however, made it clear that the project is now at a conceptual stage and it has to get all the clearances for setting up the plant.

At the same time, he said the proposed power project would be financed with a debt-equity ratio of 70:30 and the company may dilute some "minimal" equity at the project level at an appropriate time.

"Yes, if we have to fund that project; some amount of equity dilution will happen; but it would be very minimal, because our 1,050 project will start generating cash," he said when asked if the company plans to raise some equity for the project.

The dilution, however, is unlikely to happen in a year's time, he added.

Jajodia said that the company has also to look for a coal mine to fire the project as coal from the Mandakini mine in Odisha would be consumed by the 1,050 MW plant.

Monnet Ispat and Energy generates 270 MW power now, but that is used mostly by its steel plant.

The company, he said, also plans to foray into renewable sector for generating power.

"It is only sensible and logical for us to generate power from renewable sources," he said without divulging much.