The Hindu : Power utilities to raise funds from abroad

Online edition of India's National Newspaper
Wednesday, Jun 05, 2002

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Power utilities to raise funds from abroad

By Pratim Ranjan Bose

MEJIA JUNE 4. The Union Power and Heavy Industries Minister, Suresh Prabhu, today said blue chip power utilities like National Thermal Power Corporation, Power Grid Corporation, Power Finance Corporation and others having `excellent balance sheets' would explore the opportunities to raise funds from abroad. The utilities, on an individual basis, had already appointed advisors to explore the same.

Talking to news persons after laying the foundation stone for the proposed Unit IV (210 MW) at the Mejia Thermal Power Station (MTPS) of Damodar Valley Corporation here he said the plan to add at least 41,000 MW additional generating capacity in the Tenth Plan would be driven by the public investment. "While the Plan allocation for the same had been raised by a mammoth 212 per cent I have instructed the companies to explore chances of raising cheap funds from abroad. Following which we will organise roadshows".

Citing example of the concerted effort to achieve the targeted addition to generating capacity, he said breaking the tradition, NTPC was now geared to develop projects in joint venture too. The MoU for developing the first of such a project would take place soon between the central utility and the Tamil Nadu Government for developing a brown-field project near Chennai. NTPC had already signed an MoU with the Indian Railways for exclusive generation and supply of power to the latter. In the North East, the bid to develop community oriented small, mini, micro hydel projects, have also gained momentum.

Just back from a three-day visit to eight North Eastern States, Mr. Prabhu said so far 90 such projects were identified and a joint meeting of the Union Ministry of Non-conventional Energy, NEEPCO, and State governments were already organised to secure commitments about commissioning of the same.

To control power theft, the biggest challenge before the industry, the Union Ministry is leaning on the technology options. An expert group comprising chairman and managing director of Infosys had been formed. The report is expected soon.

Asked about the recent demand of Jharkhand for shifting DVC's headquarters to Ranchi, he said the issue would be resolved over bilateral discussion. A joint meting of related parties was already held and another one is slated in Delhi soon. Earlier, addressing the public meeting in connection with the foundation stone laying ceremony, he said State electricity boards (SEBs) have started reporting a drop in deficits beginning this year. The Rajashthan SEB reduced its loss by 45 per cent, Maharashtra by 40 per cent and others are on the same path. The accumulated deficit of SEBs was over Rs. 26,000 crores. MTPS has a generating capacity of 630 MW (3 X 210 MW). The new 210 MW unit will be commissioned by September 2004 at an investment of Rs. 797.8 crores. DVC had set a target of adding 6200 MW of capacity in the Tenth Plan.

The Central Electricity Authority (CEA) had already prepared a master to revamp the transmission and distribution network of DVC at an investment of Rs. 6,000 crores.

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