Calcutta, Nov. 16: The Essar group of the Ruias is planning a foray into inter state power trading business as soon as the Centre announces the new power policy next month.
The group has already formed a separate company, Essar Electric Power Development Corporation Limited (EEPDCL), through which it will diversify into what it considers a heavily potential business.
Sources close to the development said the new company has sought approval from the Central Electricity Regulatory Commission (CERC) in order to have inter-state trading licences, required for the power trading business.
The EEPDCL, however, is not interested to trade in power in the state of Jammu and Kashmir, where the political stability is far from being resolved as yet, they added.
Sources said EEPDCL has been formed in compliance with the CERC requirements.
Regarding investments for the project, they said funding is not a problem and the group can organise any amount that the regulatory authority might demand.
The plan is to purchase about 2,000 million units of power during the first year of operation from power surplus states for sale in deficit areas. The quantity would be increased gradually.
The company will not only sell power to states, but also to industrial units in bulk quantity. In future, the company may also enter into the business of export and import of power.
The Essar group is into power generation business and has a 515 MW dual-fuel capability power plant at Hazira in Gujarat, which is operating successfully over the past four-five years.
A part of the power (215 MW) generated at Hazira plant is utilised by group company, Essar Steel Limited, while the rest (300 MW) is sold to Gujarat State Electricity Board.
Earlier, group director Prashant Ruia had mentioned that the group is keen on power distribution business in the large towns and cities.
“We are looking at every possibility to go into the power business in a bigger way so far as generation and distribution is concerned,” he said.