Financial Daily from THE HINDU group of publications
Sunday, Jan 08, 2006
Financial Daily from THE HINDU group of publications Sunday, Jan 08, 2006 |
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Industry & Economy
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Power FIs, banks attend meeting on `ultra mega' power projects Our Bureau
New Delhi , Jan. 7 THE Centre on Friday convened a meeting with banks and financial institutions to work out the financing pattern of the five proposed `Ultra Mega' power projects of 4,000 MW each in capacity. The meeting was attended by Power Finance Corporation (PFC), State Bank of India, Life Insurance Corporation, ICICI Bank and IDFC, among other institutions. The ultra mega projects are proposed to be set up as pithead stations in Madhya Pradesh and Chhattisgarh, and as coastal stations in Gujarat, Karnataka and Maharashtra. State-owned PFC is likely to be appointed the nodal agency for the execution of these projects and would set up five SPVs for setting up the projects. The SPVs, where PFC is likely to pick up equity stake, would be handed over to potential investors through a competitive tariff-based bidding process by the end of this year, officials involved in the exercise said. According to Power Ministry officials, FIs and banks that attended the meeting have shown interest in financing the projects. The projects, which would entail a total cost of around Rs 75,000 crore, are likely to be financed on a 70:30 debt-equity ratio. The Government is unlikely to provide any budgetary allocation for the projects, officials said. The cost of power from these projects is projected to be in the range of Rs 2.50-2.75 per mega watt.
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