DPSC, IPCL to invest Rs 26,450 cr in power sector

DPSC, a power generation and distribution company along with IPCL, an unlisted Srei Group controlled venture-fund company, today announced an investment of Rs 26,450 crore in adding new power generation capacity over the next few years.

DPSC, which came under IPCL fold after divestment by Andrew Yule in 2009-10, will add 450 Mw of thermal power in its books at Raghunathpur in West Bengal. Another 3,750 Mw of thermal power would be added by IPCL.

DPSC Chairman Hemant Kanoria said the DPSC-IPCL combine had embarked on major expansion after the takeover and new 1,320-Mw units would be set up in Bihar and Madhya Pradesh, besides a 450-Mw unit in Haldia.

DPSC has 77.4 Mw of generation capacity at present and has a distribution licence of 618 sq km in the Asansol-Raniganj belt.

Kanoria said the company will participate in bidding for a few distribution licenses which were expected shortly.

DPSC will also invest another Rs 1,450 crore in creating and improving the existing distribution infrastructure.

Asked about funding of the projects, Kanoria said the process for financial closure process has begun for the Haldia project under IPCL and others will follow.

DPSC would require another 100 acre at Raghunathpur to set up the project.

Dilution of stake either by way of private placement or follow-on offer of DPSC is on cards as promoters holding is close to 92% and requires dilution according to Sebi norms.

Kanoria said there was about 20 to 22 months to comply with the listing guidelines.