Sembcorp might seal $250 mn deal with NCC.

Singaporean power major, Sembcorp, is close to sealing a deal with Hyderabad-based Nagarjuna Construction Company (NCC) to buy 65% in the latter's power business.

The deal which could be as high as $250 million (around Rs. 1,525 crore), might be signed soon. The deal, if it goes through, will be one of the biggest in the sector for the last four years. 'It is the mother of all deals,' said a person involved with the transaction.

Construction company, NCC, entered the power generation sector in 2007 and has been working on setting-up a power plant at Krishnapatnam in Andhra Pradesh. The coal-based 1,320 megawatt power plant, has a total project cost of Rs. 7,000 crore. While some of the coal that the power plant requires is to be imported, it will get 70% of its coal supply domestically. Coal India's subsidiary, Mahanadi Coalfields, will be supplying coal to this project.

BS