Daijiworld News Network - Udupi/Padubidri (GA)

Udupi, Jul 18: Even as protest against setting up Nagarjuna thermal plant at Yellur near Padubidri near here is gaining momentum, the company which was recently bought over by Andhra Pradesh based Lanco Group of Companies is planning to start commercial production by the end of 2009.

The sources said that Lanco has decided to import best quality coal from Indonesia.  In this regard, Lanco is all set to buy two coal companies based at Kalimantan in Indonesia.  If everything goes on well as planned, Lanco Nagarjuna thermal plant of Yellur, would be the first independent power project of the country that works on imported coal.

The proposed 1015 megawatt project would play a major role in decreasing the impending power problem of the state.  The company is in touch with the Karnataka government with regard to the financial closure by December 2006.

Lanco has bought 74% shares in the Rs 4,300 crore Nagarjuna power project.  The company sources also said that the company is planning to initiate many more infrastructural and power projects in the state in the coming years.