GMR Group plans to buy 100-150 million tonnes capacity coal mine in Indonesia to feed 1,500 megawatt power generation capacity for 20 years. The deal is likely to strike within three months.

 

The company has plans to set up a 1,000 to 1,500 megawatt coal fired thermal power plant on the western coast. The company has already done the land survey in Maharashtra and Gujarat, said GMR Group Chief Financial Officer Subba Rao Amarthaluru in New Delhi.

 

He further added that the company would increase its domestic power generation capacity from 800 megawatt to 3,000 megawatt by 2013. He also said that the company's 1,050 megawatt coal fired power plant in Orissa would be operational by March 2010.

 

When asked about the future investment plans, he remained tight-lipped and said that amidst the global financial crisis, power sector is a potential sector where there is a scope of investment and higher returns considering the EPC cost coming down to around Rs four crore per megawatt from the earlier Rs five crore to Rs six crore.