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SREI merges DPSC, IPCL; new co to require 2 mt of coal

September 2: The SREI Group has merged two group companies, India Power Corporation India Limited with DPSC (formerly known as Dishergarh Power Supply Company Limited), creating a merged entity called India Power Corporation.

Under India Power Corporation, the group is implementing a 450-MW thermal power station while under DPSC, a 2x270 MW thermal power station was being implemented at Raghunathpur, Purulia in West Bengal.

Hemant Kanoria, Chairman and Managing Director, SREI Infrastructure Finance Limited, told ICMW that, going forward, both projects, when commissioned, will require around 2 million tons of steam coal per annum.

The Haldia project is slated to be commissioned by end-2014 or early 2015 while there is yet no clarity on the Purulia project.

Kanoria further said the group is going slow on the Raghunathpur thermal power project, because there is still no clarity on the fuel linkage.

India Power also has an operational 12 MW thermal power plant within its license area.
“The larger picture behind the merger is that we wanted to regroup all the power verticals – generation, distribution and transmission – under one roof,” Kanoria said.

India Power will operate as an integrated power utility with pan-India operations.

The integration will further consolidate the company’s presence in the power generation and distribution sectors at both state and national levels. The amalgamation also brings in synergies for both the companies to operate in a competitive environment, enable a larger asset base and will provide access to a large pool of financial resources.

The newly-merged entity plans to ramp up its generation base to 1,100 MW to support its projected load demand of over 1,000 MVA, year 2016 onwards. “The construction of the 220/33 kV JK Nagar substation is a landmark project for India Power, as it marks its first 220 kV double circuit transmission line and will provide state transmission connectivity,” the company said.

Recently, India Power has also been awarded distribution franchisee by The South Bihar Power Distribution Company Limited for Gaya, Bodh Gaya and adjoining districts. The franchisee area will cover Gaya, Bodh Gaya, Manpur and their adjoining areas.