India Power Fund awaiting nod from ABD, World Bank

New Delhi, Jan 21 (UNI) International financial institutions including ADB, World Bank and KFW have expressed their interest to participate in India Power Fund, the proposed venture capital fund of Power Finance Corporation (PFC), expected to become operational this year.

''We are awaiting for confirmation from partners like ADB, World Bank and KFW. The agencies have expressed their interest in the fund and are expected to confirm their participation soon,'' according to highly placed official sources.

The fund, first proposed in 2004 to channel investments to power sector with the target of attracting funds worth Rs 7,000 crore in a decade, has already got confirmation for participation and the required seed capital from five to six banks, Life insurance Corporation being one of them, the sources told UNI.

The company also soon intends to register it as a venture capital fund with the Securities and Exchange Board of India (SEBI).

PFC will also incorporate India Power Fund Asset Management Co Ltd (IPFAMCL), for independent management of the trust funds.

The Power Ministry has demanded income-tax exemption of up to 20 per cent for investments in the fund to attract investors, who are backing off due to raising of the risk weightage requirement by the Reserve Bank of India.

The government needs an investment of 100 billion dollars in the power sector to commission 68,000 MW projects in the Eleventh Five Year plan.

''The 100 billion dollars will be utilised in non-conventional energy capacity. While 50 billion dollars will be used for raising capacity generation, the rest for transmission, distribution and rural electrification,'' Power Secretary R V Shahi had said.

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