Nhpc Talks With Jv Bidders Fail
Differences between National Hydroelectric Power Corporation (NHPC) and the bidders for the joint venture partnership is likely to delay Teesta and Parbati power projects. The contentious issue is equity structure.
NHPC chairman and managing director Yogendra Prasad yesterday admitted the corporation's inability to enter into joint venture agreements with private companies to set up mega hydel power projects due to excess manpower and demand of high equity share by the private firms.
NHPC received 21 bids for forming joint ventures to execute the 2,051 mw Teesta hydel project in Sikkim and 3,500 mw Parbati hydel project in Himachal Pradesh. However, contrary to the bid conditions, some of the companies were now demanding a majority stake in the partnership, Prasad said.
He said the NHPC was yet to take a final stand on becoming a minority partner in executing projects given to it by the state governments. He added that a few of the bidders also expressed strong reservations on absorbing the excessive manpower once the projects were commissioned.
Prasad, however, said the NHPC along with the ministry of power waste was examining the possibility of forming the joint ventures under the conditions that had been put forward.
Prasad also declared the financial results for the corporation and said that NHPC had recorded a 30 per cent increase in net profits to Rs 417.90 crore in 1999-2000 as against Rs 302 crore the previous year.
Sales turnover of the corporation was Rs 1,267 crore during the year, while the generation from its power stations was 8690.73 million units. Prasad said NHPC's outstanding touched Rs 3395 crore at the end of last fiscal, that included a surcharge of Rs 1,523.84 crore. Collections for the year 1999-2000 were Rs 1,066 crore. Prasad said the Rajasthan SEB had agreed to liquidate their outstandings in monthly instalments by September 2001 while the UPSEB had agreed to issue bonds worth Rs 300 crore against part liquidation of undisputed outstanding accumulated till March 1998.