Yet another power company from Houston, TX seems to have caught a fancy for India… Texas Power Generation LLC is going to invest $10 billion in next 10 years in India. They have started with Chattisgarh and will move to other states like Andhra pradesh etc. Hopefully this foray will be better than Enron’s deal!
I have a belief that once the market in India becomes lucrative as a consumer place the people who want to set up infrastructure will jump in too!
Over a decade after United States energy trader Enron Corp first entered India for Dabhol power plant, another Houston-based company Texas Power Generation LLC on Friday announced ambitious plans to invest up to $10 billion in next ten years for setting up power plants in the country.
To start with, TPG has signed an MoU with Chhattisgarh government for a 1,600 Mw coal-fired plant in the state at an investment of about Rs 6,000 crore (Rs 60 billion). The company has also applied for a mining block to the coal ministry which, if allotted, would require investment of another Rs 2,000 crore (Rs 20 billion).
“After signing the MoU in May last year, we are currently in the process of conducting feasibility studies. We hope to start construction by early 2007 and complete the project by 2010-11,” TPG Chairman Vijay Jain told reporters in New Delhi.
The project is being set up with a debt-equity ratio of 70:30. The company will invest $400 million (about Rs 1,800 crore — Rs 18 billion) as equity entirely through internal accruals.
The debt would be arranged from European and US lenders, India-born Jain said, but admitted this is the first time his group would set up power plants anywhere in the world.
The company also plans to invest up to $10 billion over the next 5-10 years for more projects, he said, adding they have initiated talks with various states including Andhra Pradesh for a 2,000 Mw plant.
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