The RP Sanjiv Goenka group has made a foray into the real estate space, deciding to build a residential-cum-commercial property in Haldia, where it has just commissioned the first of its 300 x 2 MW thermal power plant.
Addressing a press meet to announce the synchronisation of the first unit, Chairman Sanjiv Goenka said the second unit would be ready by March, and would help CESC become self reliant (It now imports around 600 MW from the West Bengal State Electricity Distribution Company).
The project, completed at a cost of Rs.4,500 crore had suffered an escalation of Rs.900 crore mainly on account of currency volatility.
ADVERTISEMENT
To a question on the Maharashtra power project, he said the PPA (Power Purchase Agreement) had been signed with Tamil Nadu for 100 MW, while two more were about to mature for the 600 MW project.
Mr. Goenka said the property development would be done through CESC’s wholly-owned subsidiary CESC Properties Ltd.
“We will soon float tenders to help us design and build 300 high and mid-end flats. Of these, 100 would be for employees and the balance would be kept open. There would also be a 1.2-lakh square feet commercial shopping complex,” he added.
ADVERTISEMENT
The project comes up on three acres that the company had won through an auction. The project, entailing a cost of Rs.150 crore, is likely to be ready by 2017.
There were indications that the group was exploring the possibility of commercial development of its properties elsewhere too.
However, the coal availability position for its power plants was a major concern for the company, admitted Mr. Goenka, indicating that the loss of Sarisathali block (through the Supreme Court order) had been a major blow.
“There is room for anxiety on the coal front as 50 per cent of our coal requirement came from Sarisathali,” Mr. Goenka said. The group had a tie up with CIL for 2.5 million tonnes for the three existing power plants.
There is a fuel supply agreement with Mahanadi Coalfields for the Haldia plant.