The 150 MW first phase thermal power plant of Simhapuri Energy near Nellore has commenced commercial operations. Simhapuri Energy is a 100 per cent subsidiary of Madhucon Projects Ltd. Simhapuri Energy is developing the 1,920-MW Simhapuri project in three phases. Madhucon is expected to add another 150 MW plant by June and the 300 MW second phase also will be completed during this year. Third phase has two units of 660 MW each. The total project outlay is Rs 11,270 crore.

The project is based on imported coal. PT Madhucon Indonesia, another subsidiary of Madhucon, has rights to mine three coal projects in Indonesia estimated to have about 1,500 million tonnes of coal. The company expects to begin coal production by June 2012.