Petronet to set up power plants, plans rights issue
18 Sep 2009
Chilled gas importer Petronet LNG is planning to set up two power plants and will come out with a rights issue to generate part of the capital for the plants.
The plants, each with a capacity of 1,200 MW, will be located near the company's two LNG terminals, at Dahej and Kochi. The estimated total cost of the projects is Rs7,000 crore. A major part of this, Rs5,000 will come through debt.
While the company board will soon finalise the land deal, a feasibility report and the financial model will come out early next year.
According to P Dasgupta, CEO of Petronet LNG, the company is likely to approch the capital markets in the third quarter next year. The plants could go operational by 2012-13.
India has recently managed to liase with Australia and Qatar for long term gas supplies which is in demand from power companies. Reliance too has begun production of natural gas.
The power generated from the plants will be sold to the national grid.