Tata Power plans to tap South Africa

Tata Power is looking at investing in South Africa after the country opened up its power sector for independent power producers to own and run power stations. Managing director F A Vandrewala was in South Africa recently to explore investment possibilities, Tata group sources said.

Since the plan is at a preliminary stage, group sources refused to divulge the investment figures. It is reliably learnt that the power plant - expected to be between 500 MW and 1000 MW "" will be gas-based.

Sources added the company is also exploring options of investing in Sri Lanka but nothing has been finalised yet. Tata Power has been one of the last of the group companies to make a global foray. The utility outfit recently raised $200 million worth of foreign currency convertible bonds to fund its expansion.

The move to set shop in the S Africa comes close on the heel of the group's initiative in the country's telecom sector.

Group company Videsh Sanchar Nigam (VSNL) recently acquired the South African government's 26 per cent stake in Second Network Operator. VSNL will operate and manage national long distance and fixed-line network in South Africa.

Group companies "" Tata Steel, Tata Chemicals and Tata Power, respectively "" recently announced plans to invest $2 billion to set up steel, fertiliser, and coal-based power plants in Bangladesh.