Patel Engineering to enter power generation with Rs5,000 crore project in Bhavnagar

Mumbai: Patel Engineering will invest Rs5,000 crore for setting up its maiden 1200 MW thermal power plant near Bhavnagar, marking its entry into power generation segment.

The company is setting up a special purpose vehicle (SPV) to undertake the project, which would be funded by a mix of debt and equity, Patel Engineering said in a regulatory filing with the Bombay Stock Exchange (BSE).

While the company proposes to set up independent power projects (IPP) through this maiden venture in the thermal space, it is also actively looking at IPPs in the hydropower space, Patel Engineering said.

The thermal power plant would be set up through the company''s subsidiary — Patel Energy Ltd and the electricity generated would be sold to power traders, captive consumers and state governments, it said.

The company plans to import coal for the plant, which would confirm to international environment norms.

Meanwhile, the company said it has current orders worth around Rs5,000 crore, out of which 55 per cent are from multi-purpose water supply and power projects, 25 per cent from irrigation and 20 per cent in transportation and other sectors.

The company''s joint venture with Gammon India Ltd., where Patel engineering is the lead partner, had recently bagged a Rs806 crore order from the Satluj Jal Vidyut Nigam Ltd for the 434 MW Rampur Hydro Electric Project, the company said.