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KEPCO to Buy 40% in Pioneer Gas Power

  • KEPCO, South Korea's largest electric utility, is set to invest up to Rs 500 crore in Pioneer Gas Power, which is setting up a 388 MW gas-based power plant in Maharashtra.The RS 1,250-crore Pioneer Gas Power project is part of the Pioneer Group, promoted by second generation entrepreneurs Sudhir Rao and his brother K Suhan Rao.The promoters had recently sold their listed entity Pioneer Distilleries to Vijay Mallya-owned United Spirits.

  • KEPCO, which owns and operates about 80,000 MW of power plants in Korea, will buy a 40% stake through its subsidiary, people familiar with the matter said.The financial closure will be completed through a consortium of nine banks, with IFCI being the lead institution, sources added.Tata Projects will be responsible for EPC contract. KEPCO, which posted revenues of $39 billion for December 2011, is responsible for generation, transmission and distribution of electricity and the development of power projects.

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