Sterlite to set up 2,400 MW power plant in Orissa

New Delhi, Nov 16 (UNI) Sterlite Industries India today announced it will foray into the commercial energy business with setting up of a 2,400 MW greenfield power plant in Jharsuguda, Orissa at a cost of 1.9 billion dollars in the first phase.

The power business will be operated through Sterlite Energy Ltd (SEL), a wholly-owned subsidiary of the company.

The company will raise Rs 12,500 crore through issue of foreign currency convertible bonds, global depositary receipts, American Depositary Shares or equity shares at par value Rs 2 per share, with a green shoe option.

It has filed a registration statement with the US Securities and Exchange Commission relating to a proposed offering of American Depositary Shares.

Sterlite Industries India, the flagship company of Vedanta Group, reported a net profit of Rs 136.56 crore for the second quarter ended September 30, 2006, as against Rs 81.10 crore during the same period last year.

The company's total income stood at Rs 3330.56 crore during Q2FY07 where as the same was at Rs 1739.39 crore for the quarter ended September 30, 2005.

The company stated that the figures for the Q2FY07 do not include figures in respect of Power Transmission Line division sold on a going concern basis to Sterlite Optical Technologies Ltd (SOTL) at a lump sum consideration of Rs 148.51 crore, with effect from July 1, 2006.

Hence figures for current period were not comparable to figures for the previous period. The Board of Directors approved paying of interim dividend at Rs 4 per share of face value Rs 2 each.

The shareholders of the company will meet on December 11, 2006 to consider the proposals.

UNI CS PV HT1532