Payment security for investors assured: Shahi

New Delhi, May 4 (UNI) The government today assured the investors that there won't be any problem regarding payment security for the five Ultra Mega Projects of 4000 MW each.

This was clarified by Seceratary (Power) R V Shahi while talking to reporters in a round table conference organised by Power Finance Corporation (PFC) and The Financial Express.

''India needs power and we have a shortage of it. In a recent meeting we discussed on the payment security issue and the requirement for qualification. We have held discussions with banks and various other financial institutions and they have assured the payment security if the companies are credible,'' Mr Shahi said.

After the discussion with bankers, the Finance Minister also held a discussion with the industry leaders. ''Today, all the private and public companies have been given full payment,'' he added.

He also said the payment security should be internalised and not externalised.

The five Ultra Projects have been identified as Sasan Power Ltd in Madhya Pradesh, Akaltara Power Ltd in Chhattisgarh, Coastal Gujarat Power Ltd, Coastal Karnataka Power Ltd and Maharashtra Ultra Mega Power Project company.

While the Sasan Power Project and the Akaltara Power Project are at pit head sites the rest three are at coastal locations.

All the five projects identified will be taken up by a shell company or SPV.

The projects are likely to generate electricity at a cost of Rs 1.50 to Rs 1.80 per unit.

UNI MP CS HS1503