LNJ Bhilwara group incorporates BEL; investment at Rs 7,000 cr
Noida, Oct 24 (UNI) The LNJ Bhilwara group, a Rs 2,400 crore conglomerate with a presence across various sectors including textiles, steel and IT enabled services, today announced the incorporation of Bhilwara Energy Limited (BEL) to its existing list of companies.
BEL will be LNJ Bhilwara group's flagship entity in the power sector business, and will be the holding company of the existing power generation companies of the group namely Malana Power Company (MPCL) and AD Hydro Power Limited (ADHPL), which is a subsidiary of MPCL.
The company proposes to hold a majority equity stake of 51 per cent in MPCL, a move through which it would also acquire 45.9 per cent holding of ADHPL indirectly, since MPCL holds a 90 per cent stake in ADHPL.
To give shape to its vision, the group would require an investment of Rs 7,000 crore in the next five to seven years. BEL plans to raise the investment through private placements, public offer (IPO), and Global Depository Receipts at various stages.
As a part of its forward integration measure, BEL will be focusing on diversification of the group's portfolio in the power business, and is planning to enter into power transmission, power distribution, power trading and power generation from non-hydro sources such as thermal, wind and nuclear.
The company, which also does business of graphite electrodes, power generation and power consultancy, endeavors to develop or acquire new green field power projects in states like Himachal Pradesh, Uttaranchal, Sikkim, Madhya Pradesh, Chhattisgarh and Arunachal Pradesh, and renovate and modernise old power stations.
''BEL, reiterates the group's focus in the power sector. The LNJ Bhilwara group is determined to expand its power generation capacity continuously, to 1500 MW by year 2012,'' Group Chairman Ravi Jhunjhunwala said.
Power is a critical infrastructure for economic development in India, which is still a power deficit country with an energy deficit of about 8.3 per cent and peak deficit of 12.5 per cent in 2005-06.
To overcome this shortage, the government has charted out a plan 'Power for All; by 2012. The capacity addition target by the end of 11th plan has been set at 100,000 MW.
LNJ Bhilwara's power business already operates and generates around 175 MWs of power through various hydro, thermal, HFO and wind power plants.
By 2010, the group will be producing more than 500 MWs of power.
UNI RA DKA DB1827