Mpseb To Float Infrastructure Bonds Year-End

The Madhya Pradesh State Electricity Board (MPSEB) has decided to float infrastructure bonds to finance the upgradation of the transmission and distribution network in the state. The bond issue will also be used to finance the Sanjay Gandhi III and IV thermal power projects at Birsinghpur in the state.

The issue will be floated later this year, according to a board official.

The official, however, refused to disclose the size of the issue or any other details.

The board had already pumped in Rs 300 crore into the Sanjay Gandhi project which will be coal fired.

It has also obtained a Rs 408 crore loan from the Power Finance Corporation. The balance will be financed by the bond issue.

 

The Madhya Pradesh electricity board has signed a memorandum of understanding (MoU) with seventeen companies in the state for creating additional power capacity.

However, only three have obtained tecno economic clearance from the Central Electricity Authority.

This includes the 500 mw Bina-Grasim project promoted by the Aditya Vikram Birla group and the 1,000 mw project promoted by multinational Daewoo.

The state had been power surplus in the 1980s. But not a single megawatt had been added since 1989, the official said, explaining the privatisation drive.