Texas-based Destec Energy is planning to enter the Indian power sector by investing approximately $2 billion in electricity-generating projects. Destec Energy is an associate company of Dow Chemicals, which is one of the top 50 companies listed in the Fortune 500.
Destec has thus become the latest power giant to plan major investments in the Indian power sector in recent times. The move comes at a time when major foreign players have drawn up plans to invest in the power sector. Last week, American power major, Enron, announced plans to invest $10 billion in India, while Japanese conglomerate Sumitomo Corporation plans to launch a 100 per cent subsidiary which will invest in five-six power projects. Any apprehensions that foreign investors may have had about investing in this crucial infrastructure sector following the turbulence experienced by Enron's Dabhol project appear to have been allayed, at least for now.
A high-level team, including Destec president and managing director Garry Mann and its Asia-Pacific vice-president, Henry Bell, is expected to arrive early next month. The visit is aimed at finalising tieups with Indian partners .
The company's Indian representative said it plans to put up plants only in West and South India. The company will focus on setting up large power plants (above 500 megawatts) as well as small captive plants for industries which require assured power supply, he added. Destec will rely mainly on imported coal for power generation.
The company has decided to concentrate on these two areas chiefly due to the availability of potential customers and the reforms that have taken place in the states within these regions. Destec Energy is already one of the short-listed companies for a 600 mw power plant in Gujarat.
Destec currently has more than 18 operational power projects in the US, which generate more than 8,000 mw. It is also constructing power plants in several other countries, including Australia (1,000 mw), China (450 mw), the Netherlands (405 mw), the Dominican Republic (236 mw), Britain (140 mw) and Canada (110 mw).
