GEMAC Energy Ltd. (GEL), a nascent venture of the closely-held GEMAC, is planning to set up a coal-based power project near Kumbakonam in Tamil Nadu.
The project will have a total capacity of 1,320 MW and will be implemented in two phases of 660 MW each.
The first phase of the project is expected to be completed in three years. The project is projected to reach full capacity in five years.
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The project is estimated to involve a total investment of around Rs. 6,000 crore. The debt component could be 75 per cent, according to officials of the newly-formed company.
Kumaran Nagasundaram and Shanmuganathan N, who are directors of GEMAC, are believed to be the principal force behind the power project. Company officials informed presspersons that the two were agriculturists and held huge tracks of farm land. Set up in December last, GEL boasts of an array of top-notch professionals. K. Thiruppathi, who served as Managing Director of TPL and also as President of Sterlite Industries, has been roped in as the Chairman of GEL. N. Srinivasan, former Executive Director of NLC (Power Division), is its Vice-Chairman. Kishore Arcot, former head of the power SBU of Vedanta Group, is the CEO of GEL.
Mr. Thiruppathi said that the GEMAC Group had inked a memorandum of understanding with SEPCO III of China, a leading EPC (engineering, procurement and construction) contractor, to scout for joint opportunities in the Indian power sector. In this context, he said SEPCO III would assist GEL in the proposed coal-based power project.
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Mr. Arcot said that GEL was also exploring the possibility of a financial partnership with SEPCO III besides the EPC relationship. The project would be in the nature of producer of merchant power. Land for the project had already been acquired, they claimed.
On sourcing the coal needs, the officials indicated that coal could be imported from Indonesia. They also said that the project would house a desalination plant as well.