Hong Kong billionaire Michael Kadoorie-founded CLP Holdings plans to invest $2 billion for building a 2,000-MW imported coal-fired plant in Gujarat . It will take three years to complete construction of the power plant after getting the necessary approvals from the government, Richard Lancaster, CEO of CLP Holdings said.
"At the moment, we are looking at the feasibility of further investment in our gas plant in Gujarat to use imported coal," said Lancaster. "The gas plant is reaching the end of its life and it is a peaking plant. Procuring gas at affordable prices is a constraint."
The CLP Group (formerly China Light & Power) is one of the largest players in Asia's energy sector, supplying 80 per cent of Hong Kong's electricity needs, besides over 24,000 MW in Mainland China, Australia, South-East Asia, Taiwan and India.
The company also operates a transmission and distribution business, and its portfolio includes coal, biomass, hydro, wind and even nuclear power generating assets.
Sources said CLP India began its power sector investments with an acquisition, beating Tata Power's bid for Gujarat Pathugan Energy Company, acquiring a controlling stake in the 655-MW gas- and naphtha-fired power station in Bharuch district of Gujarat.
The plant was a joint venture between the Ahmedabad-based Torrent group, the Gujarat government and Siemens. Later, PowerGen bought over Torrent's 46.3 percent stake for Rs 1,100 crore and then acquired Siemens's stake as well.
CLP paid over Rs 1,200 crore to acquire the power plant. The company has also added over 900 MW of wind power to its generating capacity, besides a 1,320-MW (660x2) coal-based power plant at Jhajjar in Haryana.
CLP's India gas-based early plans were hampered by availability of natural gas. The company had signed a long term fuel supply agreement with Reliance Industries for KG-D6 gas in 2009, but the supply was well below its required quantity.