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Madhucon buys coal mine in Indonesia

Construction and real-estate company Madhucon Projects Ltd has acquired a 5,000- hectare coal-mining block in Indonesia, in line with its pursuit of getting into the energy sector.

The coal mine in the East Kaliyamandin region will be exploited immediately with the commercialisation of 100 hectares which start producing by August this year, director finance S Vaikuntanathan said at an analyst conference.

The mine has been acquired through a 100% subsidiary company in Indonesia on a 30-year lease, he added.

The move is in line with the company’s plans to get into the power sector for which it has acquired 48% equity in Simhapuri Energy Pvt Ltd, a special purpose vehicle which will set up a 540 MW thermal power project in two phases of 270 MW each near the Krishnapatnam port in Nellore, Andhra Pradesh, he said.

The project will use imported coal and Madhucon has tied up with the power trading corporation on offtake of 75-80% of the generation, Vaikuntham told analysts.

“The memorandum has already been entered into and a detailed project report is being prepared,” he said, stating Madhucon would invest Rs 100-110 crore in the project as equity over the next two-and-a-half years. Madhucon posted an income of Rs 510.04 crores in the year just gone by with a net profit of Rs 41.70 crore.

Having made a name for itself in road building and irrigation projects in India the company was now looking at getting into property development, energy, port development and more particularly EPC contracts, company officials said.

At the same time it was also keen to venture into overseas roads projects and property development, they added.

The company, which is majorly into BOT (build-operate-transfer) road projects is doing 330 km of four such ventures costing a total of Rs 2,100 crore.

Further it is looking for another 600 kms odd of such projects over the next two to three years, which would be another Rs 4,000-5,000 crore of works, the officials said.

In a new foray the group is getting into the real estate sector to build a mall and hotel on a 9.2 acre plot at the prime Kukatpally area in Hyderabad.

It has already acquired the property at a cost of Rs 42 crore to develop the retail mall, a hotel and some residential properties at a cost of Rs 200 crore.

Source : DNA India

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