IndianOil, Tata Power in joint venture plan
Ahemdabad   15-Dec-2008
Flagship refiner-marketer IndianOil and private major Tata Power are close to signing a JV deal to set up a 500mw power plant in Orissa where the state-run firm is setting up a 15 million tonne (mt) refinery complex at an investment of a little under Rs 30,000 crore. According to the plan, Tata Power will have a majority stake in the JV while IndianOil will hold 26% equity. The JV has identified the location to put up the generation unit, some 100km from Paradip, and the site where the refinery is being built. The JV also envisages laying a transmission line to power the refinery Replying to a TOI query, B M Bansal, the man in charge of finding new businesses for IndianOil, confirmed that the company has firmed up plans with Tata Power but declined to either disclose more details or say when an agreement will be signed. He did, however, say that the plant was aimed as a captive unit and there were no plans to sell power to the national or state grid. Other IndianOil executives' said the move is aimed at having a reliable power source for the Paradip refinery it is also expected to reduce IndianOil's electricity bill through efficient operation of the generation unit.