| CESC will have at least 51 per cent stake in all the SPVs, which will be part of the company's consolidated balance-sheet. The power utility may resort to a follow-on offer or GDRs (global depository receipts) for raising resources for these projects. |
| The company will invest close to Rs 16,000 crore in these projects, having a combined generation capacity of 4,200 mw, over the next six-seven years,. |
| Vice-Chairman Sanjiv Goenka said CESC was likely to float separate SPVs for the projects, but the group power utility would have a controlling stake in all these SPVs. |
| "CESC will have 51 to 100 per cent stake in these SPVs and those will be part of CESC's consolidated balance-sheet," he said. According to Goenka, the mega power projects will have a debt-equity ratio of 1:2.3. |
| The group will require Rs 4,700 crore as equity for these projects. "The equity will be required over a span of five-six years as around 3,200 mw, of the proposed 4,200 mw, is under 11th Plan," Goenka added. |
| The fresh capital would come from a combination of internal accruals, sale of low-performing assets and fresh issue of capital, he said. |
| "Fresh issue of capital will be close to Rs 1,000 crore and the rest Rs 3,700 crore will come from internal accruals and sale of non-performing assets," the vice-chairman said. |
| The power utility will require 1,000-acre land for each of the projects. Goenka said CESC had already applied to the Jharkhand and Orissa governments for land. The Jharkhand power project will be near Dumka and the Orissa project will be near Keonjhar. |
| Incidentally, CESC today signed an engineering procurement and construction contract (EPC) with BHEL for the third unit of Budge Budge. The project cost for the 250 mw unit is estimated at around Rs 1,100 crore. The value of the EPC contract is around Rs 800 crore. |
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