New Delhi, Apr 19 (UNI) India Infrastructure Finance Company (IIFCL) and Infrastructure Leasing and Financial Services (IL&FS) has signed a collaboration agreement to take up development and co-financing projects on a Public Private Partnership (PPP) basis.
''IL&FS has been at work to develop several power projects worth 6,400 MW capacity in Tripura, Andhra Pradesh, Sikkim and Uttaranchal, while additional projects in Rajasthan, Orissa and Jharkhand are in the pipeline,'' D K Mittal, Chief Executive of the company told mediapersons yesterday.
IIFCL and IL&FS will jointly develop, finance and implement power generation and transmission projects in the country. The initial projects identified are -- a gas-based power generation and transmission project in Tripura, a gas-based and coal-based power project in Andhra Pradesh and hydro-electric power projects in Sikkim.
These projects would entail an investment of about Rs 24,000 crores in the form of debt and equity, Mr Mittal said.
IIFCL, promoted by the government of India, provides long term finance to infrastructure projects, debts especially of longer maturity, directly to projects and also provides finance to banks and financial institutions for loans of a tenor exceeding ten years.
IL&FS is promoted by Public sector Financial Institutions and Banks to develop projects in the infrastructure sector on a commercial basis.
The Government, through the Electricity Act 2003 has opened up significant investment opportunities in the power sector by de-licensing electricity generation and opening up the transmission sector for private players.
The power generation market is entering a competitive mode and cost of generation has become a critical parameter in determining the long-term viability of projects, an IIFCL official said.
''To enhance the success rate for implementation of Greenfield generation and transmission projects, IL&FS would complete the project development activities before the private sector entity is selected for project implementation,'' Mr Mittal said.
Since energy security of a nation is a pre-requisite for sustainable economic development, it becomes essential for the country to take adequate measures to focus on power generation.
The collaboration between IIFCL and IL&FS is a significant step towards facilitation of additional power generation capacities in the country.
UNI AD RA HS1732