IFFCO in race for Rs 2,600cr Mumbai harbour link

The Indian Farmers Fertiliser Co-operative Ltd announced on Friday it has joined hands with different companies to bid for the Rs 2,600-crore (Rs 26-billion) Mumbai Trans Harbour Link Project and build a 1,000 MW thermal power project in Chhattisgarh.

An IFFCO-led trans-national consortium has been pre-qualified based on a global tender to develop MTHL, wherein a 22-km long bridge will be built across the sea connecting Sewri in Mumbai to Nhava in Navi Mumbai, a company release said.

The consortium includes Italian-Thai Development Company Ltd of Thailand, MAEDA Corporation of Japan and ITD Cementation India Ltd.

The project to be developed on Build, Operate and Transfer (BOT) basis will be the first such venture in which IFFCO will face stiff competition from six global consortia.

The contracts for the project are likely to be awarded to the successful bidder in 2007-08, it added.

IFFCO chairman S K Jakhar said the company has entered into a joint venture agreement with Chhattisgarh State Electricity Board to develop a 1,000 MW coal-fired power project at Prem Nagar in the state, the release said.

The 74:26 joint venture christened IFFCO Chhattisgarh Power Ltd has been incorporated to take up the project, whose financial closure will be achieved by this fiscal.

IFFCO and its associates will put in Rs 1,155 crore (Rs 11.55 billion) towards equity in this power project while the CSEB would pitch in with Rs 405 crore (Rs 4.05 billion). The debt equity ratio for the Rs 5,200 venture has been set at 70:30.

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