Steag GmBH takes 5 per cent stake in HNPCL

Germany based energy major Steag GmBH has agreed to take a 5-per cent stake in Hinduja National Power Corporation Ltd (HNPCL) through its subsidiary Steag Energy Services GmbH. Under the agreement between the two entities, Steag would have the option to invest in future power projects of the group.

Also, Hinduja group's power sector holding company Hinduja Energy India Ltd is to enter into joint venture with Steag Energy Services (India) Pvt Ltd for operations and maintenance of various power projects in India.

Besides operating the Visakhapatnam plant of HNPCL, the JV would also carry out operations and maintenance activities of new power projects in India. HNPCL's 1,040 MW coal-based thermal power plant is in an advanced stage of construction and is slated for commissioning in 2013.

The coal-based sub-critical thermal power plant (2X520 MW) is being set up with an capital outlay of Rs5,545 core which is being funded at a debt-to-equity of 3:1.

The company has awarded EPC contracts for both boiler-turbine-generator and balance of plant to Bharat Heavy Electrical Limited, which boasts a well established track record in the field.

An agreement with Evonik Energy Services (India) Pvt Ltd for the operation & maintenance (O&M) to ensure efficient operations and high plant availability has also been signed.