Gujarat NRE signs pact with SAIL for setting up Cogeneration Power Plant

Gujarat NRE Coke Ltd has announced that on April 13, 2007 the Company has signed an agreement with Sailcon, a division of Steel Authority of India, wherein Sailcon would be providing consultancy services for the implementation of 15 MW power plant each at Bhachau and Dharwad, totaling 30MW.

The power plants are being designed by using the sensible heat of the flue gas generated from the Company's coke oven batteries. Each power plant is expected to cost around Rs 50 crores and will be commissioned within 24 months. The setting up of the power plants would help reduce the operating cost of its steel mills.

The Company also has plans to set up a 3rd Power Plant for 15 MW at its Jamnagar coke works which would be implemented in the 2nd phase.

The Company is India's largest non captive manufacturer of met coke with operating coking coal mines in Australia.

The stock closed the day at Rs.50, up by Rs.1.10 or 2.25%. 779296 shares changed hands at a weighted average price of Rs.50.15 in BSE compared to 2 week average of 1370177 shares. The stock hit an intraday high of Rs.51.90 and low of Rs.49.

Source : Equity Bulls

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