Date:04/02/2005 URL: http://www.thehindubusinessline.com/2005/02/04/stories/2005020403510300.htm

Back `Ten private power projects in sight of financial closure'

Our Bureau

New Delhi , Feb. 3

ABOUT 10 private sector power projects, with a cumulative installed capacity of around 9,000-10,000 MW, are expected to achieve financial closure over the next couple of months, the Power Secretary, Mr R.V. Shahi, said here recently.

These projects are expected to achieve financial closure by the end of March, he said. "Another 8-10 major power projects are being assisted. They are likely to achieve financial closure by March," Mr Shahi said in his inaugural address at the POWER-GEN International Exposition on the power industry.

Mr Shahi said all these projects have a tariff of around Rs 2 per unit. He said 11 independent private power projects with a capacity of 4,000 MW had already achieved financial closure in 2004. Mr Shahi said coal would remain the dominant fuel, while liquefied natural gas would be feasible only if supplies were assured and prices were within an acceptable range.

"If fuel cost is more than Rs 1.20-1.30 per unit, we cannot produce power within Rs 2 per unit," he said.

On the Tenth Five-Year Plan's (2002-07) aim of adding 41,000 MW, he said the country was more or less poised to meet the target. The Government is also taking measures to add 60,000 MW during 2007-12, he added. Mr Shahi said the Government has given a major thrust to hydel power generation to correct the mismatch in the hydel-thermal ratio, which had fallen to 76:24 in 2003. The country has a potential to generate 1,50,000 MW of hydel power.