Business Line reported that the Monnet Group is giving a re-look to its power business amid uncertainties in the sector.
Mr Sandeep Jajodia CMD of Monnet Group said that an earlier target to establish 3,000 MW capacities by 2017 now seems tough as clearances did not come on time and uncertainty over a coal block.
Mr Jajodia said that “We have been slow because the environment in the power sector has changed considerable since we made the announcement.”
He said that “We are not in a hurry now. Power business is not as interesting as it was supposed to be or imagined few years ago. There are issues and many of them needs to be sorted out by Government.”
The group with interests in steel, iron ore, coal and power, is focusing on commissioning the projects under execution first rather than going for new ones.
He added that with the current power situation, there is so much negativity in business environment. One doesn’t know if it’s prudent to put more money in the power sector. So, one will have to wait and see.
Now, Monnet targets to commission 1,050 MW project at Angul in Odisha by Q3 of 2013-14. Earlier, the power plant attached to Mandakini coal block, was expected to be commissioned by December 2012.
He said that “The project is delayed because Odisha Government could not acquire the land and give it to us on time. We couldn’t start work, adding that we do not see any cost over run because the zero date of the project got shifted.”
The Mandakini coal block has been offered stage I forest clearance. Monnet is trying to put the block on stream, which would offer fuel to Angul power plant. The company proposes to start mining and operationalize the power station simultaneously.
Mr Jajodia said that in case, it doesn’t happen, we will have to resort to buy from e-auction or source partly from the Indonesian mine. In 2011, the group acquired a coal mine in Sumatra in Indonesia, for USD 24 million.
After commissioning of the 1,050 MW, Monnet would explore setting up of another 660 MW in the same complex, which will take the total installed capacity in Angul to 1,710 MW.
