India's Madhucon Projects Secures Contracts to Develop 75-Megawatt Hydropower Projects in Uttarakhand

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Researched by Industrial Info Resources (Sugar Land, Texas)--Uttarakhand Jal Vidyut Nigam Limited (UJVNL) (Dehradun, Uttarakhand), the state electricity company for the northern Indian state of Uttarakhand, has awarded a contract to develop three hydropower projects to infrastructure company Madhucon Projects Limited (BSE:531497) (MPL) (Hyderabad, Andhra Pradesh). The contract involves the development of three projects with a combined power generation capacity of 75 megawatts (MW) that can be ramped up to 100 MW in future. The three projects are the Agastamuni, Tilwara I and Tilwara II hydropower projects, which will be developed on the Mandakini River, a tributary of the Alaknanda River that flows through the Rudraprayag district of the state.

The three projects, each with a capacity of 25 MW, will be implemented on a build, operate and transfer basis. Under the terms of the agreement, MPL will operate the projects for 35 years. The detailed project reports are being prepared.

Thermal power company Simhapuri Energy Private Limited (Nellore, Andhra Pradesh), a subsidiary of MPL, is developing a 1,920-MW thermal power project in four phases at the Mommidi and Tamminapatnam villages in Nellore district, in Andhra Pradesh. Construction of the 300-MW Phase I of the project is under way and is scheduled to be completed by February 2011. Phase II of the project is scheduled to be completed by July 2012. Financial closure for Phase II is in the advanced stages and expected to be achieved soon. The environmental clearance processes for Phase II also are under way. Coal for the thermal power project will be largely imported from MPL's coal mines in Indonesia.

PT Madhucon Indonesia (Palembang, Indonesia), a subsidiary of MPL, has procured licensing rights to develop coal mines spread over 10,000 hectares of land in south Sumatra. Production at the site, with estimated reserves of 900 million tons of coal, is expected to begin by March 2010. The calorific value of Indonesian coal is higher than that of domestic coal, while the ash content is lower.

Among its other projects, MPL's associate company Madhucon Sugar and Power Industries Limited (Khammam, Andhra Pradesh) is operating a 22-MW cogeneration plant near the Khammam district of Andhra Pradesh. The plant uses bagasse as its main fuel. MPL is finalizing plans to set up gas-based power plants in two Indian states. The company's plans include the development of a 5,000-MW power generation facility within the next five years.

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