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Dev Chatterjee
MUMBAI, DEC 25: Dabhol Power Company (DPC) has closed its insurance cover deal with Chennai-based United Insurance last week making it one of the most expensive insurance cover for any power project. The insurance firm has already received a Rs 35 crore premium for providing the insurance cover to the second phase of the Ratnagiri-based power project.
United Insurance officials say that they are now in talks with the international insurance giants for re-insurance of the project as the risks involved for the power project is very high. "We are planning to retain only two per cent of the premium and pass on the rest of the premium and risk to the re-insurer," said a top official of United Insurance.
The Rs 6,000 crore project is being promoted by Houston-based Enron Power Corporation with 50 per cent equity stake and the Maharashtra State Electricity Board (MSEB) which has bought 30 per cent equity for Rs 636 crore recently. The balance of the 20 per cent equity is shared equally between GE Capital andBechtel Enterprises. The first phase of project was also insured by United Insurance which was successfully re-insured by the company.
The 826 mw plant (phase one) of DPC would be commissioned by January next year while in the second phase, DPC plans to increase the capacity of its power plant to 2184 mw.
Officials say that they are negotiating with more promoters for insurance of power projects and few deals are expected very soon.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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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.
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