Adhunik Metaliks to foray into power sector

Steel and mining company Adhunik Metaliks is planning to foray into the power sector by setting up 3,480-Mw generation capacity before 2015 with an investment of close to Rs 17,000 crore. The Rs 3,000-crore Adhunik Metaliks Group’s energy plans will be powered through Adhunik Power and Natural Resources, which will act as the holding company for three coal-based power projects planned in Jharkhand, Orissa and Bihar.

The company, which is now implementing a 540-Mw project near Jamshedpur in Jharkhand, will double the capacity to 1,080 Mw in the second phase. It is also planning to set up super-critical power plants in Chhattisgarh and Bihar of 1,200-Mw capacity each.

The company requires around Rs 5,000 crore in equity for its power plans. This will be funded by an initial public offering in 2011, strategic tie-ups with power sector players and a stake sale to private equity players.

The Union government is planning to add a minimum 60,000 Mw of capacity during the current five-year plan and another 100,000 Mw during the next five-year plan to meet the increasing demand for power. Private sector players, such as Reliance Power, Tata Power, GMR Energy, JSW Energy, Lanco Infratech, Essar and Indiabulls have a pipeline of various power projects, ranging between 3,000 Mw to 32,000 Mw of total capacity.