PFC to detail CERC on execution of power projects

New Delhi, Apr 23: Power Finance Corporation (PFC), the prime lending agency to the power sector will make a presentation to the Central Electricity Regulatory Authority (CERC) this week to clarify its position on the execution of the seven ultra mega projects.

The presentation comes close on the heels of CERC asking the Power Ministry to clear its stand on the execution of the seven mega projects to be set up across the country. CERC had said that it was unclear at what level or in what capacity the Corporation was involved in the entire excercise of being involved in the projects--whether as a procurer or as an agent, sources said.

The Corporations' ambit is for raising resources from international and domestic sources as well as lending the funds to power projects in India and bringing about financial improvement in the functioning of state power utilities and assisting reforms in the power sector.

Each project will require an investment to the tune of Rs 15,000 crore. Expression of interests have already been called for Sasan, Mundra and Girye power projects.

From the originally proposed five ultra mega power projects of 4,000 MW each, the number has gone up to seven of the same capacity.

The projects are located in Madhya Pradesh (Sasan), Orissa, Chhattisgarh (Akaltara), Gujarat (Mundra), Maharashtra (Girye), Karnataka (Tadri) and Andhra Pradesh (Krishnapattnam).

Meanwhile, bidding for the third of the seven ultra mega power projects got under way in Mumbai. A 4000 MW plant is coming up in Sindhudurg in Maharashtra.

Prior to this two such projects -- at Sasan in Madhya Pradesh and Mudra in Gujarat --have been opened for bidding.

The Power Ministry intends to complete the entire process of awarding these contracts to the bidders by the end of this calendar year.

Power sector majors including Tata Power Company (TPC), Reliance Energy Ltd (REL), Essar, Ispat, GVK, GMR, RPG Group, AES, GE, Alstom, Siemens, China Light and Power were present at the bidders' meet in Mumbai being convened by the state-run Power Finance Corporation (PFC).

These companies would be offered the 4,000 MW imported coal based ultra mega power project to be developed through competitive bidding in the coastal Sindhudurg district.

UNI