Mumbai, Feb 17 (PTI) Tiana Power Projects, the flagshipcompany of the Tiana Group, today said it has entered into atechnical collaboration with Kepco E&C of South Korea forErection Project Consultancy (EPC) for gas power projects inIndia.
The joint venture agreement was signed by the Founder ofthe Tiana Group, A M Nathani, and Kepco E&C''s Vice-President,Plant Division, Ahn Kwang Jin.
Kepco E&C has received an initial order to the tune of Rs5,500-crore.
Tiana Power Projects is setting up four power projects --two in Maharashtra, one in Cochin and one in Andhra Pradesh.
"The two projects in Maharashtra are located at Anjarleand Adur-Budhalkand, both in Ratnagiri district, of capacitiesof 1,600 MW and 2,400 MW, respectively," Tiana Power''sFounder, A M Nathani, told reporters here.
The power projects in Cochin and Andhra Pradesh are bothof 1,360 MW each. All these four projects are expected to becompleted in a period of 3-4-years from now. The total costinvolved in these projects will be Rs 18,000-crore, which willbe met entirely through internal accruals without any outsideborrowings, Nathani said.
The power generated will be entirely sold to therespective state governments at Rs 1.50 per unit, Nathanisaid, adding that the company will save about 35 per cent ofpower manufacturing cost due to non-debt and non-equityborrowings. .
The State Governments are expected to distribute power at Rs 2.25 per unit as compared to the present average cost of Rs4.50 per unit charged by various State Governments.
The company''s long-term plans include setting up 90 powerprojects across the country. The Indian Government hasaccorded an in-principle approval to Tiana Group''s plan to setup 90 power projects in the thermal, hydel, solar, wind andnuclear power segments.
The Group is eyeing a 10,000 MW target of powergeneration in 3-4 years, Nathani said.
The company has an existing wind power project in Kutch(Gujarat) of 100 MW power, which is expected to be on-streamin May 2011. On completion, the project will be run by Enercon(India) Limited and supply power to the Gujarat Government,Tiana Power''s Chairman, Jayantilal Lalchand Shah, said.
The company has two more wind power projects under itsbelt at Jaisalmer (Rajasthan) and Satara (Karad) inMaharashtra.
The power generation will be 25 MW at each place at acost of Rs 142-crore in each state. These projects are likelyto be completed by end-2011, Shah said.