Maha Agro, Sicom May Pick Stake In Mpdcl

Two Maharashtra government undertakings, Sicom and Maharashtra Agro Industries Development Corporation (MAIDC), may pick up a 10 per cent stake jointly in Maharashtra Power Development Corporation (MPDCL), the special purpose vehicle (SPV) floated by the state to pick up stake in Dabhol Power Company (DPC).

The state energy department has written to the administrative ministries of these two companies offering them a stake in MPDCL. The state agriculture minister and finance minister are expected soon to direct MAIDC and Sicom respectively to divert their surplus funds to pick up equity in the MSEBs special purpose vehicle, sources said.

However, officials in MSEB said, Both the companies are going through the offer document. It is learnt that the companies will together pick up at least 10 per cent equity in the SPV and the remaining 90 per cent will be held by the board.

 

With this, MSEB will hold 27 per cent in Dabhol Power Corporation (DPC) through MPDCL and MAIDC, together with Sicom will indirectly hold three per cent, while Enron will directly hold 50 per cent and 10 per cent each by GE and Bechtel.

MPDCL has an equity base of Rs 10-crore, of which MSEB will contribute Rs 9 crore. The balance Rs 1 crore being offered to the two companies. Moreover, the two state government undertakings may also contribute Rs 70 crore as debt to MPDCL and MSEB, sources added.

MSEB needs to raise about Rs 746 crore for picking up a 30 per cent stake in DPC. As part of its fund-raising, the state electricity board last week launched the first tranche of a bond issue worth Rs 150 crore.

The issue has been given an unconditional and irrevocable guarantee by the state government.