NHPC, NTPC to route power funds from W Asia

National Thermal Power Corporation (NTPC), National Hydel Power Corporation (NHPC), and Power Grid Corporation of India (PGCIL) will be the three agencies through which investments from West Asia will be channelled into the power sector.

Union Power Secretary RV Shahi told Business Standard that the government had initiated talks with governments of Dubai, Qatar, Abu Dhabi and Kuwait for the purpose.

The talks, he said, would be taken forward by these public sector companies, which were in the process of identifying suitable projects.

The NTPC has already identified its Kayankulam power plant in Tamil Nadu as a possible destination for attracting investment from Qatar.

A Qatari team recently visited the plant and is said to be waiting for an evaluation report. Teams from the other two companies have visited these countries prior to identifying probable ventures.

Once the projects were identified and agreed upon, they would be spun off as separate special purpose vehicles to facilitate investment, Shahi said.

The governments of the West Asian countries had expressed interest in putting up both equity and debt for the projects. However, they were not interested in taking a controlling stake in any of the projects, he said.

As part of its negotiations with the oil-rich countries, the NTPC was also considering joint ventures for combined cycle gas-based power plants, with commitments for long-term gas supply.

"While it is not a pre-condition for investments, we will prefer to tie up on long-term fuel supply, if possible, for the combined cycle gas-based projects with these countries," Shahi said.

The empowered committee on transmission set up by the ministry had identified 15 transmission lines for private sector participation. Of these, expressions of interest for two "" the North Karanpura line in Jharkhand and strengthening of the Talchar (Orissa) to Kolar (Karnataka) line "" would be invited in the next two weeks.

The Rural Electrification Corporation (REC) would be the nodal agency for the projects, which would be modelled on the ultra mega power projects (UMPPs), Shahi said.

The REC would form shell firms and do the groundwork for the projects, including obtaining environmental clearances.