| Chairman and managing director, Neepco, S C Sharma said, "We intend to set up four power plants in Arunachal Pradesh with a total generating capacity of 2,920 MW under joint venture agreement with private parties. We have initiated talks with Tata Power and BSES for setting up a joint venture companies." |
| On the holding pattern of the new company, Sharma said, "We intend to hold a majority stake in the company at a minimum of 51 per cent, while the rest may be divided between the partners." |
| Sharma, however, clarified that Neepco does not intend to give away the management control of the new company. |
| The four projects with a total generating capability of 2,920 MW, will be combination of three 600 MW hydel power plant and another large one "" with a generating capacity of 1,120 MW, explained Sharma. |
| With average cost of 1MW of hydel power plant estimated at Rs 2.8 crore, the total cost of the project is expected to be around Rs 8,400 crore, while the average tariff for power generated is estimated at Rs 1.58 a unit. |
| "We have approached Tata Power and Reliance around a month back and are yet to figure out the details of the joint venture company with regards to the total capital outlay and the debt equity ratio of the company," Sharma explained. |
| The general practice was a 80:20 debt equity ratio for such large projects. With a 20 per cent equity, the private partner will have to bring in a total of Rs 850 crore "" at a 49 per cent holding, while Neepco will have to pump in the rest at Rs 860 crore. |
| Meanwhile, the North East-based power generating company, which has a total installed capacity of 1,150 MW, has tied up with SBI Caps for raising Rs 800 crore for new projects. |
| The company is also expecting a net profit of Rs 160 crore in 2003-04. Total fund requirement at Neepco was Rs 10,000 crore till the 11th Plan. |
| With 30 per cent budgetary support from the government, Neepco is looking for funds worth Rs 6000 crore. |
Top Section
Explore Business Standard