Visa group will invest Rs 4,500 crore (Rs 45 billion) for setting up a 1000-MW mega thermal power plant in Orissa and also engage in all-India power trading, diversifying from steel.
Besides setting up the 4x250 MW power plant, supposed to be operational in phases from 2010, the company planned to get into third party power trading by the next quarter.
Later it will sell the power generated on its own, Visa Power Limited (VPL) Managing Director Vikas Agarwal told PTI.
"We hope to get trading license from the Central Electricity Regulatory Commission by this month. The first transaction of trading of power is expected to be executed by August," he
said.
VPL will participate in tenders for surplus power from the eastern region and will sell its produce in north and western parts of the country.
Agarwal said its first 250 MW power unit will be operational by September 2010 and every six months thereafter a unit of 250 MW will be added.
"The 1000 MW capacity would be reached by March 2012," he said.
VPL intended to fund the equity component of the project from its parent companies, Visa Minmetal AG, Switzerland and Visa International Limited.
"The debt equity ratio for funding will be at 70:30. The equity for the initial plants of 250 MW each will be funded by Visa Minmetal as FDI," Agarwal said.
