State-run Korea Electric Power Corp. subsidiary Korea East-West Power Co. Ltd. has signed an agreement with Sahara India Power Corp. Ltd. to collaborate in constructing and operating coal-fueled thermal plants in Orissa on India's eastern coast.
Under terms of the $9 billion project, Sahara India Power Corp. Ltd. and Korea East-West Power Co. Ltd. will build and operate coal-fueled thermal plants capable of generating 6,000 megawatts of electricity. In the first phase of the collaboration, the pair will build two 600 megawatt thermal power plants in Orissa, scheduled to come online by 2016, South Korea's Yonhap news agency reported.
Sahara India Power Corporation Ltd. CEO Ashok Bhargava and Korea East-West Power Co. Ltd. President and CEO Gil Gu Lee have signed the project's Memorandum of Agreement in New Delhi. The MoA is an extension of an earlier agreement between Sahara India Power Corporation Ltd. and Korea East-West Co. Ltd to construct a power facility in Titlagarh with two 600 megawatt thermal power plants.
Sahara India Power Corp. Ltd. and Korea East-West Power Co. Ltd. have already received Indian government approval to cooperate in the building and operation of the plants.
Korea East-West Power Co. Ltd. stated that its profits will come from the right to sell electricity for 25 years after the facilities come online.
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com More