Athena in three-way power JV

Venture plans to develop 10,000 mw of power by 2015.

Hyderabad-based Athena Projects, Infrastructure Development Finance Company (IDFC) and the power trader PTC India have teamed up to launch a joint venture "" Athena Energy Ventures (AEVPL) "" to foray into power projects.

AEVPL, started with an authorised equity capital of Rs 750 crore, plans to develop 10,000 mw of power capacity in India by 2015, with an investment of over Rs 40,000 crore.

Athena is promoted by K V Vijayakumar, chairman, and a group of high net-worth individuals based in India and abroad, including the promoters of the Karvy group and the Matrix Laboratories founder N Prasad.

While Athena will have a 52 per cent stake in AEVPL, IDFC and PTC will have 28 and 20 per cent, respectively. A shareholders' agreement was signed by the chairmen of the three companies in Mumbai today, in the presence of Union Power Minister Sushil Kumar Shinde.

"All the ongoing projects of Athena will come under the purview of the joint venture," said T V Krishna, the managing director of Athena Energy Ventures. It is currently developing a 3,000 mw hydroelectric project at Demwe River in Arunachal Pradesh, bagged through competitive bidding. Athena hopes to get the necessary clearances within an year and produce power from the project in five years.

At Srikakulam near Vishakhapatanam, Athena is setting up a 2,400 mw coal-based power plant. About 2,000 acres of land have been transferred to the company by the Andhra Pradesh Industrial Infrastructure Development Corporation (APIDC). An agreement was signed today with Knowledge Infrastructure Systems to supply imported coal from Indonesia.

The company was also pursuing another 1,320 mw coal-based power plant at Chattisgarh and a 2,000 mw capacity gas-based power plant in coastal Andhra Pradesh, he said.

"From 2011, our plans will be to add 1,000-2,000 mw capacity every year. Apart from these projects, we will acquire either part or full stake in upcoming projects in India and abroad. We shall be involved in all aspects of the energy cycle," he said.

AEVPL is likely to increase its authorised capital to Rs 1,500 crore at a later stage, if required. The projects will be funded through debt and equity.

Talking to reporters on the sidelines, Sushil Kumar Shinde said the government would also encourage private players to develop machinery for the power projects. At present, BHEL is the only domestic company in the segment, which cannot meet the entire demand, considering the government's plans to add 78,000 mw capacity during the 11th Plan.

"Recently Mitsubishi and L&T have entered into an agreement for making power equipments. We require at least 3-4 companies to enter this field," he said.

Commenting on the upcoming ultra mega power projects, he said the Tamil Nadu and Maharashtra governments were yet to finalise the place for these projects. Environmental issues and local protests affected the planned project in Karnataka. The projects require 1,800 to 2,000 hectares of land, he noted.