| Jaiprakash Hydro-Power Ltd (JHPL), which operates India’s largest hydropower plant in the private sector, plans to foray into the power transmission and distribution business.
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| JHPL is setting up its first mega power plant at Karcham Wangto in Himachal Pradesh with a capital outlay of Rs 5500 crore. The project should achieve financial closure by this June.
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| The company plans to have at least 5000 mw power production capacity by 2015.
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| “We are now seriously weighing options to enter into the power distribution and transmission business. We are targeting the north and north-east Indian states for this business,” said Pankaj Gaur, director, Jaiprakash Associates.
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| The company holds a 36.66 per cent stake in JHPL.
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| “We are also looking at opportunities for setting up new power plants. For our Baspa-II power plant in Himachal Pradesh, we have already put in place a 56 km transmission line. Due diligence for setting up a power plant and distribution business in Assam and other north-eastern states has been initiated,” Gaur added.
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| JHPL is also setting up another hydro-power plant of 400 MW capacity in Vishnu Prayag.
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| It also plans a 1000 MW power plant in downstream Sutlet, at Karcham Wangtoo in Himachal Pradesh.
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| “The total expenses for the plant is pegged at Rs 5500 crore in which there would be equity funds of Rs 1600 crore and rest would be term loan. We are expecting Rs 1000 crore coming through buyers’ credit and Power Finance Corporation Limited (PFC) has already apprised the project and we hope to tie-up with financial entities for rest of the debt funds as the target date to achieve financial closure is June, 2005,” Gaur said.
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| JHPL’s initial public offer (IPO) opens on March 22 and shall close on March 29.
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| Saying that JHPL has recently initiated talks with state-run PTC Limited for sales of power from its proposed 1000 MW plant at Karcham Wangto, Gaur said: “This plant will be developed on build-own-operate (BOO) basis by JHPL. The plant is targeted to be commercially commissioned in single phase by 2010.”
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| JHPL is also construction two power plants, one for National Hydro-Power Corporation (NHPC) at Sikkim and another plant at Tala in Bhutan for a joint-venture between Government of India and Government of Bhutan.
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| While the Sikkim plant will be of 500 MW capacity, Tala plant will produce 1020 MW of power, once commissioned with full capacity. |
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