Return
to Story Page
To print: Select File and then Print from your
browser's menu
Anupama Airy
New Delhi, Nov 18: The government has asked the National Thermal Power Corporation (NTPC) to take control of the proposed shell company to be formed for every mega project.
Top official sources told The Financial Express that in order to facilitate expeditious implementation of each mega power project, NTPC would initiate the process of obtaining all the requisite clearances from the concerned agencies in its own name and after selection of the project developer through the competitive bidding, these clearances will then be transferred to the private sector project developer.
Moreover, in order to get speedy clearances at the state level, the beneficiary states have also been asked to participate in this shell company. The details in this regard will be firmed up at a meeting of the power ministry with all the potential beneficiary states, to be held shortly.
Giving details about the working of this shell company, sources said that NTPC will act as the main functionary of this company and besides getting various clearances at the centre and the state level, it will also carry out all the necessary surveys and investigations and prepare feasibility reports required for the development of these projects.
"Once a project reaches the implementation stage, the shell company will transfer all rights to the private sector developer and will cease to exist after that," sources said.
The cost of surveys and investigations, preparation of the feasibility reports and the expenditure on clearance process would be reimbursed by the developers to NTPC and would form part of the project cost.
The shell company is being formed with the idea of cutting short the implementation schedule of putting up mega power projects. Usually, the private sector developers spend a lot of time doing the initial spadework and in taking clearances from different agencies.
The private sector developers of these mega power projects will be selected through the competitive bidding route which includes issuing the `request for qualification (RFQ)', shortlisting of potential developers and finally inviting the `request for proposals (RFPs)'.
Whereas, NTPC will be involved in the initial development of these projects, Power Grid Corporation of India Limited (PGCIL) has been asked to finalise the RFQ and RFP documents along with finalising the power purchase agreements and other associated agreements for these projects.
Officials said that besides opposition from various quarters, work on the constitution of the proposed Power Trading Corporation (PTC) is going on in full swing.
The capital structure of PTC has already been proposed and justice PN Bhagwati-led Standing Independent Group (SIG) will soon take a final view on the amount of paid up/authorised capital of this body.
Power Grid, NTPC, Power Finance Corporation (PFC), UTI, LIC and IDFC amongst others are the different participating agencies in this trading body.
SIG has already asked Power Grid to start work towards getting PTC registered and finalise the articles of association, memorandum of association and shareholders agreement in consultation with NTPC and PFC.
It may be mentioned here that the government has already identified a host of mega power projects to be taken up by the private sector which includes the 2,000mw Pipavav, 1,500mw Krishnapatnam, 1,000mw Cuddalore, 1,000mw Narmada and 3,960mw Hirma power project.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
------------------------------------------------------------
This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
------------------------------------------------------------