Torrent Power to invest Rs 6000cr

Torrent Power is aiming high. The Ahmedabad-based power generation and distribution company is now looking beyond the state for growth prospects.

It is willing to invest upto Rs 6000 crore to back its power plans.

Over the next 3-5 years, Torrent will pump in Rs 1800 to Rs 2000 crore to expand its power generation capacity from the current 500 Megawatts. It will set up a Hydel power project in either Himachal Pradesh or Uttranchal and another lignite or coal-based power project in western India.

Markand Bhatt , MD, Torrent Power Generation Limited said, "We also have plans in the future to have a combined basket of generation arrangement, wherein we are seriously studying 250 MW of hydel power in Northern part of the country and we are evaluating the possibility of 1000 MW plus generation either lignite or coal based."

And it is not just generation, Torrent is also eyeing power distribution projects outside Gujarat. Bhatt said, "We are not lagging behind in responding to various states like UP, Karnataka, Maharashtra, HP and Uttranchal.As and when their public intentions are advertised either for privatisation or public participation, we have studied them."

Within Gujarat itself, Torrent is spending Rs 3096 crore on its 1100 MW Sugen Project now under construction near Surat. This project will go on stream by mid 2007 and could be expanded even further once it reaches the half -way mark.

Torrent says DEG Germany will pump in 12 million euros for a 7.5% equity stake in the project. 75% of the Sugen power will go to two Torrent distribution companies, but the company may also sell 100 MW to Power Trading Corporation, those talks are in the final stages.

Torrent also has plans to go public, but it is waiting till the Sugen project is commissioned.

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