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IDBI to lend Rs 3000 cr to power sector

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Kavita Nair Mumbai
Industrial Development Bank of India (IDBI) has chalked out an investment of about Rs 3,000 crore in the power sector as part of its infrastructure financing in 2005-06. A significant portion of these would be for new projects and funding some existing projects.
 
IDBI's exposure to the power sector in 2003-04 was 9.9 per cent of its total advances. In absolute terms, it was Rs 3912.7 crore.
 
"There is a significant increase in investments this year from big players to set up or expand their existing projects. We are now seeing concrete plans which are being implemented," said Jitendra Balakrishnan, executive director of IDBI. Most plants are slated to have a capacity of 500 mw and above.
 
Analysts tracking the power sector cite that owing to the reform processes initiated by the government, the financial position of various state electricity boards have improved. Owing to this, the investment environment in the sector has been looking up.
 
The government has targeted setting up plants with capacity totalling to 100 000 mw by 2012. Of this, 10,000 mw has been constructed while 25,000 mw is underway. The process is expected to be completed by 2007.
 
IDBI's annual report (2003-04) indicates that the top seven industries "" telecom services, electricity generation, financial services, fertilisers, refineries and oil exploration, textiles and chemicals "" together accounted for 69.5 per cent of the total sanctions and 58.5 per cent of the total disbursements during the 18 months between April 2003 and September 2004.
 
The assistance sanctioned to infrastructure sector during April 2003-September 2004 accounted for 35.7 per cent of the overall sanctions made during the year as against 10.0 per cent in April 2002-March 2003.
 
Telecom services and electricity generation had the major share in the total funding for infrastructure sector, the report added. IDBI's investment in the power sector is expected to cross Rs 1400 crore by the end fiscal March 31, 2005.

 
 

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First Published: Mar 07 2005 | 12:00 AM IST

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