Nagarjuna set to tie up funds for Rs 7,000 cr Andhra plant
280 MW Project in Sikkim

Hyderabad-based Nagarjuna Constructions Company (NCC) is expecting to achieve financial closure for its 7,000 crore coal-based power plant project in Srikakulam district of Andhra Pradesh in the first quarter of financial year 2011. The project, once completed, would have capacity of 1,320 megawatts (mw).

“We have got clearance from the union ministry of environment and forest for the project. The project requires 1,500 acres of land, of which, the state government has allotted 1,000 acres and we bought the remaining 500 acres,” managing director A Ranga Raju told Financial Chronicle.

Raju said the company has also secured coal linkages for the project. “We are talking to financial institutions for financial closure of the project, which is expected to happen in next three to four months,” Raju disclosed.

At present, NCC is working on three power projects — a 100mw plant in Himachal Pradesh, a 1,320mw plant in Andhra Pradesh and a 280mw plant in Sikkim.

Despite several power generation companies having evinced interest in acquiring coal mines, NCC, at least for now, does not seem to have any such plan. “Earlier, we were excavating land for mining companies. But now we have started bidding for tenders called by PSUs for overburden removal and coal extraction as an EPC contractor,” Raju said.