Kribhco-BSEB joint power venture on the cards

21/03/2008

Patna, (Bihar Times): Krishak Bharati Co-operative (Kribhco), a Gujarat-based fertiliser cooperative firm, is planning to set up a 1,000 MW joint venture project in Bihar in association with the Bihar State Electricity Board (BSEB), at an investment of Rs 4,000 crore. It will hold 51 per cent in the project.

After Chhattisgarh this would be the company’s second joint venture in power sector. The 1,000 MW project with the Chhattisgarh State Electricity Board (CSEB) is likely to be completed by the end of the 11th Five Year Plan.

The joint venture in power sector confirms the diversification of company into power generation and trading activity. Kribhco is also setting up a jetty at its Hazira power plant and has entered into a tie-up with the Railways for container services. Iffco and Kribhco are essentially one of India’s major profit-making fertiliser manufacturer.

According to Kribhco’s Managing Director B D Sinha his firm is making efforts to move into power trading as part of diversification plans. These steps are part of the future expansion and diversification programmes across the country.

It is estimated that about 1,000 acres of land will be required for setting up the power plant. The power
project in Bihar will be funded mainly through loans from banks and financial institutions. Kribhco has also initiated dialogues with Power Trading Corporation for their foray into power selling.

Kribhco gave its presentation for the project to the Bihar government on Monday. Its Chairman Chanderpal Singh Yadav was quoted in a newspaper as saying that it all depends on how the Bihar government helps us in setting up the plant. On the other hand Sinha said the Bihar government is yet to decide about the transportation of coal from Jharkhand.

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