Bajaj Hindustan to raise funds for power foray

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Bajaj Hindustan to raise funds for power foray

Bajaj Hindusthan is on a fund raising mission to fund its power foray. The power foray will start in Uttar Pradesh and the company has received most clearances for the project. CNBC-TV18’s Executive Editor Shereen Bhan reports.

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Leading sugar company Bajaj Hindustan is on a fund raising mission to fund its power foray. The power foray will start in Uttar Pradesh and the company has received most clearances for the project. CNBC-TV18's Executive Editor Shereen Bhan reports.

The deal with Balrampur Chini has been off the table for about two weeks now but that the company's enabling provision approved from shareholders to raise funds will now be used in the power sector.

In an interview to CNBC-TV18, Bajaj Hindustan's Kushagra Bajaj had spoken about the company's plans to venture in power as early as August.

Sources say the company is actively getting things operational and will start in UP where most clearances have already been gained.

UP has also allowed the company open access, which means it can sell 50% to the government and 50% to whoever it wants to sell to. The cost of generation, sources say, is about Rs 3.5. The company will look at selling power to the government between Rs 5-5.5.

In the first phase, Bajaj Hindustan is looking at commissioning about 400 MW, which should be operational in about 18 months. In the second phase, it aims to generate about 660 MW.

Bajaj Hindustan is also learnt to be looking at acquiring a coal mine abroad and is readying about Rs 1,000 crore for the buy. The company has identified sites such as Mozambique and South Africa.

The total cost of the first phase of power venture and to the coal mine acquisition would come to about Rs 1,600 crore while the second phase would stand at Rs 3,000 crore. The funds would be part equity part debt.