The Power Finance Corporation Ltd (PFC), the public sector undertaking under the ministry of power, has entered into talks with multilateral funding agencies for financing its Rs 19,000-crore renovation and modernisation (R&M) plan.
The ministry has in fact already lined up loans to the extent of $500 million from the Exim Bank of the US. It has also lined up another tranche of loans from the Japanese Bank of International Cooperation for $250 million and the Canadian Exim Development Bank for $90 million.
Speaking at the sidelines of a curtain raiser of the 'International conference and business meet on optimisation of R&M', A A Khan, chairman and managing director, PFC, said the $90 million loan was for the Bandel project in West Bengal.
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PFC has also initiated a dialogue with Asian Development Bank for another round of loans for the purpose. "Talks are on and we expect to have loans sanctioned this year itself," he said. The rest of the loans will be from budgetary support. The aim, however, was to procure as much as possible from foreign agencies, including development banks.
As part of long-term planning, the Central Electricity Authority (CEA) has prepared a national perspective plan till 2012, for R&M and life extension of thermal and hydro power stations in the country.
Out of a total coal-based thermal capacity of 61,400 mw, about 16,800 mw capacity has been identified for R&M and life extension during the 10th Plan to improve performance and to extend useful life of plants by another 15-20 years. This involves 141 plants, of which 106 will require life extension and another 35 R&M. A thermal capacity of another 13,000 mw would become due for R&M and life extension during the 11th Plan.
According to the assessment made, an investment of about Rs 16,000 crore will be required for R&M for life extension works during 10th and 11th Plans.
Similarly out of the present total hydel generating capacity of 25,000 mw, about 9,000 mw capacity will be completing more than 35 years of operating life by the end of 11th Plan. The operating life of this capacity could be extended by another 20-25 years by R&M. The assessment made suggests that investment of about Rs 3,000 crore will be required during 10th and 11th Plans for R&M, upgrading and life extension of hydel power stations.
Meanwhile: The ministry of power has identified 400 plant sites with potential of tapping hydro-electric power. The ministry has started dialogue with state governments for developing projects at these locations.
It will also try and pull in foreign players to set up greenfield projects in collaboration with local partners. The modalities are yet to be finalised.
The government, at present, is in the process of preparing a detailed project report for each of these locations.
Meanwhile, it has finalised the 600 mw Kaming Hydro Electric project and is in the process of finalising another 2000 mw project at lower Subarsini in Arunachal Pradesh. NHPC is in charge of the projects.
Around 38 per cent of the identified capacity is in the north-eastern part of the country. The ministry has done a survey of the six major river basis in the country, including Indus, Ganges, and Bramhaputra.
The sites were divided into three categories on the basis of the generation potential and basins. The ministry has recently completed a satellite imaging of the Indus basin, through the National Remote Sensing Authority, which is in the process of evaluating the land use, forest cover and other resources on all the basins.