Indiabulls Power Services Ltd, a subsidiary of Indiabulls Real Estate Limited, has signed an MOU with the Government of Jharkhand for setting up of 1320 MW (2X660)Independent Power Project in the state. According to sources, the proposed coal fired project, with an expected capital outlay of Rs 6600 crore, will be operational within four years from the date of financial closure. The Govt of Jharkhand will facilitate all clearances for the project under a single window and will assist Indiabulls in acquiring suitable land within the state, and will also allot the requisite quantity of water from the state’s reservoirs.

This apart, the state government is expected to use its good offices with the central government for allocation of suitable land blocks for captive coal mining for the proposed project. The Government of Jharkhand, in turn, will have the right to claim 25% of power delivered by the proposed power plant under a mutually agreed Power Purchase Agreement (PPA). Indiabulls will have the right to sell the balance 75% of power to purchasers outside the state or to bulk consumers within the state.

It is noteworthy, Indiabulls, already an established player in the financial services and real estate sectors, has identified power as a key strategic thrust area. A case in point is the recent 1320 MW Bhaiyathan Mega Thermal Power Project in Chhattisgarh which was won on levelised tariff bid amidst stiff competition from a host of established players like Tata, Reliance, Sterlite and GMR. Bhaiyathan Power Project has captive coal mines containing proven reserves of 350 million tonnes and land for power project will soon be handed over by the state govt. Besides, the Group has tied up with the State of Maharashtra for another IPP of 2640 MW in Amravati District, wherein Government of Maharashtra has already allotted land and water for the project, and coal linkage is in the process of being tied up. The JV between Indiabulls and SembCorp is in the fray for 4,000 MW Ultra Mega Power Project at Tilaiya, Jharkhand. SembCorp is a public company listed on Singapore Stock Exchange with market capitalization of over US$ 6 billion. Temasek Holdings, an investment fund owned by The Government of Singapore, is the promoter of SembCorp and owns 49.9% stake in the company.

The group has cumulatively, including this latest proposed 1320 MW proposed plant, more than 6700 MWs worth of power projects under implementation.

Interestingly, L. N. Mittal of Arcelor Mittal and Farallon, a leading Private Equity Fund of U.S.A have recently picked up nearly 27% in Indiabulls Power ventures for an approximate 1600 crore. This was the largest private equity deal consummated in the Power sector in India. The deal valued the power business of Indiabulls at 5,525 crores. The networth of the Indiabulls Power company is Rs 2,172 crores and it is amongst the top 5 private companies by way of networth in the power sector.

Sourced From: Concept Public Relations India Pvt. Ltd

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