Financial Daily from THE HINDU group of publications
Saturday, Apr 20, 2002
Alliances & Joint Ventures
Tata Power keen on venture with DVC
KOLKATA, April 19
TATA Power Ltd (TPL) has shown keenness to partner Damodar Valley Corporation (DVC) for setting up a power plant.
Sources said that informal talks had already been held in this regard. "The Tatas have shown interest in tying up with DVC for setting up a 500-MW power plant in Bokaro,'' sources told Business Line.
DVC has employed the joint venture route to take over the captive power plant of Bokaro Steel for which a joint venture company the Bokaro Power Supply Co Ltd has been formed. The 302 MW captive power plant is the largest in the SAIL family.
Sources said that land for setting up a 1000-MW unit was available with SAIL around this power plant.
"We have appointed Mecon to do a study for setting up two 500 MW units in two phases and further talks will be held with Tata Power only after we receive this report by early May,'' sources said.
DVC, which is increasingly tapping the joint venture route, has decided to promote the (2x500 MW) Maithon Left Bank project through Maithon Power Ltd (MPL), its joint venture with BSES of Mumbai.
Mr J.C. Jetli, DVC Chairman, said that the 4x250 MW Maithon Right Bank project was being implemented by MPL and several concessions had been obtained for this project, which is the region's only mega power project.
He said that of the Rs 26,000-crore capital expenditure planned by DVC in the 10th Plan period, Rs 14,500 crore would be sourced through deferred credit and the join venture route.
Of the remaining portion, 29 per cent, or Rs 7,500 crore, would be through institutional finance and bonds and the remaining through internal resources of DVC.
He said that even as DVC continued its efforts to recover its dues of Rs 1,609 crore, it was able to contain its borrowings, which stood at only Rs 29 crore in 2001-02. DVC earned Rs 2,284 crore through sale of power in the last fiscal, as compared to Rs 2,208 crore in 2000-01.
Mr Jetli said that along side the creation of fresh capacity, DVC had embarked on Rs 1,364-crore renovation and modernisation programme, which would extend the life of four of its plants by 15 years.
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