Kolkata-based India Power Corporation Ltd. (IPCL), a Srei group company, is planning to acquire stressed assets in the power sector to double its generation business, a top official said.
“We are currently evaluating three to four power plants in Jharkhand, Maharashtra and Karnataka,” said Hemant Kanoria, chairman, IPCL.
“We prefer pit-head power stations within coal mines, coal-fired or those thermal plants located on the coastal region to reduce the operational and coal transportation cost,” he said.
Currently, IPCL generates almost 1,600 MW of power through thermal, solar and wind power plants.
Thermal accounts for almost 1,400 MW, solar 36 MW and wind 100 MW.
Over the next two to three years, the plan is to double the generating capacity to 3,000 MW to 3,500 MW, he said.
“To attain the goal, we are not going to set up greenfield projects. We will either acquire firms with stressed assets or brownfield projects. Most of the times, bankers and promoters do not know what to do with stressed assets. We have been in the industry for long and we know how to handle the situation,” he said.
Internal accruals
On funds for the proposed acquisitions, Mr. Kanoria said: “It is purely an opportunity-based acquisitions. We have to scout for the right type of power plants. “All these acquisitions will be funded through internal accruals.”
