The Hindu : Business : Thermax completes fast track power plant for Madras Cements

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Friday, Sep 02, 2005

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Thermax completes fast track power plant for Madras Cements

Corporate Reporter

CHENNAI: With oil prices ruling above $70 a barrel, it makes sense for industries to generate captive power with cheaper fuels including coal, pet coke, lignite and biomass, according to Meher Pudumjee, Chairperson, Thermax.

Announcing the successful completion of the 36 MW captive power plant at Madras Cements built by Thermax, Mrs. Pudumjee told presspersons on Thursday that the company had commissioned a number of power plants using these fuels all over India. The delicensing of captive power plants (CPP) as per the Electricity Act 2003 had certainly given an impetus to the CPP market and Thermax's basket of products and services lend themselves to exploit this opportunity.

Handing over a bonus cheque for Rs. 1 crore from Madras Cements to Thermax for the completion of the power plant in a record time of 16 months, Ramasubrahmaneya Rajah, Chairman and Managing Director of Madras Cements said, the company was always looking for areas of cost reduction as it would not be proper to pass on the over cost of production to consumers. Interest cost was another important part in the cost of production and the company could reduce its interest cost significantly through various financial instruments. Madras Cements was the most efficient cement company in power consumption and the consumption per tonne of cement capacity by the company might be the lowest in Asia, he said.

The outlay on the power plant was Rs. 92.9 crore.Madras Cements was meeting 100 per cent of its energy requirement through captive power plants.

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