Balco plans Rs 5,000 cr power plant in W Bengal

KOLKATA: Anil Agarwal's Vedanta group is exploring the possibility of setting up a 1400-1500 MW coal-based thermal power plant in Bengal at a cost of Rs 5,000 crore. The $4 billion group is examining the modalities of putting up the project at Burdwan, the state's coal belt, and proposes to implement the venture through Bharat Aluminium Company Ltd (Balco). Currently, Vedanta has a token presence in Bengal through India Foils. "Balco may float a special purpose vehicle for the Bengal project, which would be a standalone power plant in the IPP (independent power producer) mode," sources said. Balco runs a 810 MW captive power plant at Korba in Chattisgarh. State government officials declined to comment on the Vedanta interest. It is still unclear how much land would be needed for the project, if it materialises. The picture is equally hazy on whether Vedanta would directly acquire land for the venture. Videocon's proposed 1200 MW power plant near Burdwan has a land requirement of 1,000 acre. The Buddhadeb Bhattacharjee government has promised to acquire land on Videocon's behalf. The state is also arranging land for RPG Enterprises flagship CESC's 1,000 MW plant at Haldia. Agarwal, commonly called as the non ferrous metal czar of India, has already entered power generation the IPP way through Sterlite Energy, a wholly owned subsidiary of the group's India flagship, Sterlite Industries. "Construction of the Jharsuguda plant has already started. As a group, we are venturing into stand alone power projects. SEL has also applied for coal blocks," sources added. Sources said, Balco, which the group bought in 2001 through divestment process of the government, is on an expansion spree. "It has announced an investment outlay of Rs 8,100 crore to set up a smelter. Once this happens, Balco will become the biggest single location aluminium plant in the world.