Hyundai, the South Korean company which was ousted from the 1,000 mw Anpara C project, has picked up 26 per cent stake in Uttar Pradesh-based Jawaharpur Power Co.
The Jawaharpur Power project is promoted by Ashok Dhillion of Canada-based Canadian Pacific Corporation.
Hyudai is likely to invest up to Rs 260 crore in the project which is estimated to cost Rs 3,200 crore and have a debt:equity ratio of 70:30.
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Canadian Pacific was given the mandate to implement the 800 mw Jawaharpur Power project about three years ago. But the promoters could made little progress in obtaining the necessary clearances.
After the induction of Hyundai, the process of clearances has picked up pace. Power department sources say it has already obtained environment clearance and is close to finalising its techno-economic feasibility report.
The project is also close to finalising its coal linkage.
However, the earlier delay in obtaining clearances threatens to stall the project.
As per government guidelines, the MoU route through which the project was given the mandate, will be open only if the project has obtained techno-economic clearance by September 30, 1997. In this case, the project is about a year late.
Industry sources say that either the project will not be given techno-economic clearance and be asked to come through competitive route, or, the government will have to make an exception.
If the latter happens, then some other changes will have to be incorporated in the policy.
The government's stand in this regard is not known.