German Offer To Set Up Two Power Projects

Germany has offered to set up two show-case major power projects to facilitate India in tackling infrastructure bottleneck which is hampering the countrys economic growth.

Finance minister P Chidambaram, who returned earlier this week from a three-day official visit to Germany, said the offer was for setting up of two thermal power plants of around 600 mw each which would be stepped up to around 1,200 mw each in the second phase.

He told PTI yesterday that the two power projects would be on build-operate-own (BOO) basis and a German delegation would be visiting India this month-end to firm up the proposal.

 

The two power projects will be selected from several sites identified by the power ministry for the setting up of such plants on a BOO basis. Funded by the German Export Credit Financing, the projects will be cleared on a fast-track basis and all tie-ups, including financial, are to be completed in 16 months. The projects will be ready for commercial operation in 56 months.