India Intelligence Report

  Govt Plans More Power Plants


The Federal Power Ministry unveiled ambitious plans to create several ultra mega power plants that can generate 4000 mega watts (mw) at the cost of Rs.150 billion each. These plants are expected to generate power between Rs.1.50 to Rs.1.80 per unit. Two plants located in Chhattisgarh and Madhya Pradesh will use domestic coal. Two others located in coastal Karnataka and Gujarat will use imported and domestic coal. A fifth project at Ratnagiri in Maharashtra is also being considered. These plants are expected to use the efficient 800 mw supercritical boilers which Bharat Heavy Electricals Ltd will import through foreign collaborations. Boilers from French Alstom, turbines from German Siemens will provide the technology. Other companies from Russia and South Korea are also being considered. Leading financial institution, PFC will invite "expressions of interest" for these plants by February 2005. The plan is to parallelize the process by getting independent clearances for these companies and make the deal open to investors by end of 2006. PFC will also initiate company registration, invitation of bids, and complete all necessary studies by end of next month. Pre-qualification of potential investors is expected to be out by March.






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