National Power Plans Recast

The UK-based power major National Power, following its decision to reorganise India operations, has decided to pull out all its expatriate executives by next month. Also, the company may freeze all its fresh investment plans for the country.

National Power country chief Bob Middleton has already been asked by the head office in London to move out of India by the middle of next month.

Sources said the review of Indian operations resulted from the slow progress in the National Power-funded projects in the country.

Following the investment freeze, the company would only pursue with its present operations in India, the sources added.

Peter Giller, National Power's chief of International operations in London, told Business Standard that after the pullout of the expatriate executives, its ongoing ventures would be run by Indian employees.

At present, National Power has a joint venture with the Hindujas for the 1000mw Vizag power project. It has also joined hands with the Videocon group to develop the 1000mw North Madras power project.

National Power has already pulled out of the 2,000mw Pipavav project for which it had jointly bid with ABB.

The company now holds 49 per cent equity in the Vizag project which is stuck on the issue of a project cost of around Rs 6,000 crore. At a recent meeting, the power ministry assured National Power that it would resolve the escrow issue for the project, but it was up to the promoters and the Andhra Pradesh government to handle the other bottlenecks. The state government pointed out that the project cost was on the higher side, and it wanted a cost reduction of Rs 400 to Rs 450 crore, according to sources.