Haldia Petro to invest INR 70 crore in power venture

BL reported that having acquired the captive power JV, HPL Cogeneration Limited in May this year, Haldia Petrochemicals Limited is planning a INR 70 crore investment in the power plant to reduce the energy bill.

As per report, the project is estimated to improve HPL’s bottom line by INR 155 crore a year by reducing the use of high cost naphtha with petrochemicals gas and several low cost petrochemical by products as feedstock to produce power.

The report said that while the 2 part project will be implemented over a period of 12 to 15 months, part of the benefits of the project may start reflecting in the HPL balance sheet beginning this fiscal. The pay back period of the investment is estimated to be less than 6 months.

According to the sources in the State government controlling the Haldia Petrochemical management, the company may rope in GE Infrastructure and Doosan Babcock Energy in implementing the projects.

HPLCL was previously a 51:49 JV between L&T and Haldia Petrochemicals. In May this year, HPL acquired L&T’s stake in the JV in a cash deal of INR 180 crore. Accordingly, HPLCL is now a wholly owned subsidiary of Haldia Petrochemicals Limited. HPLCL produces approximately 70 MW of captive power against a nameplate capacity of 116 MW and steam, using naphtha as feedstock. Naphtha is supplied by HPL.