Patel Engineering is likely to set up power projects in Arunachal Pradesh and Tamil Nadu by 2012, thus marking its foray in power generation.
In this regard, the company has set up a wholly-owned subsidiary, Patel Energy, which is expected to handle its power generation business. Plans are afoot to set up hydro power project in Arunachal Pradesh and thermal power project in Tamil Nadu.
The company is likely to set up a 120 MW hydro-power project in Arunachal Pradesh at an investment of Rs 800 crore. The debt-equity ratio for the project is expected to be 70:30. While, the company is likely to invest Rs 210 crore, the balance is expected to be raised through debt. The company intends to achieve financial closure by first quarter of FY11. Land acquisition has already been completed and the project has received necessary environmental clearances.
The company is expected to sell 60 per cent of the power generated from its Arunachal hydro plant on a merchant basis, while the remaining 40 per cent is likely to be sold commercially.
Source : ProjectsToday
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