Karnataka Power Corp to form JV with BHEL

The Karnataka Power Corporation Limited (KPCL) and Bharat Heavy Electricals Limited (BHEL) will partner financial institutions to float a joint venture (JV) company this month to take up power generation in Karnataka.

Under the partnership, the KPCL-BHEL combine will own 52 per cent (26:26) stake in the JV with the balance being offloaded to financial institutions. The company proposes to take up two projects with a combined power generation capacity of 1,980 Mw, Karnataka’s minister for power KS Eswarappa, said on Monday.

“The JV company is yet to be named. It will take up two power projects in Raichur district worth 660 Mw in Edlapur and two units of 660 Mw each in Yeramarus,” Eswarappa said. “We are working out the total investment needed for these two projects with Union power ministry officials. The costs will be finalised soon and the new company will be floated on January 12.”

This public-private partnership model has been tried out in Tamil Nadu earlier. The Tamil Nadu Electricity Board (TNEB) has partnered BHEL and financial institutions to set up a similar JV, K Jairaj, principal secretary - power, Karnataka government, said.

On other power projects in the state, Eswarappa said, “The 200-Mw Gundiya power project with an investment of Rs 800 crore and 220 Mw power generation unit at Shivanasamudra on an outlay of Rs 600 crore have obtained Environment Impact Assessment clearance.”

The state government will finalise the NTPC’s Kudgi power project on January 12.