New Delhi, Nov 16: Brazilian power major, Companhia Paranaense de Energia (Copel) is eyeing the country's power sector and is exploring the possibilities of investing in India's hydro power sector. The head of the international affairs division of Copel Susie Cristina P Krelling told The Financial Express that the company is seriously looking towards India and has initiated a series of studies to explore investments opportunities in its power sector.

She said COPEL, a state controlled company, is one of the major utilities actuating in the field of power generation, transmission and distribution in Brazil. During her recent visit to India, Krelling met the officials from the nodal ministry. She said though COPEL has not firmed up any investments, it is considering the five mega hydro project sites identified by the site selection committee constituted by the power ministry.

COPEL has already undertaken a series of mega hyrdo power projects in Brazil, including Foz do Arela hydroelectric power plant, the largest generation unit in Brazil and Capivari-Cachoeira hydro electric power plant.Meanwhile, the power ministry has also received proposals from other power majors including Ontario Hydro, Hydrocubic and SNC Lavalin for putting up mega hydro projects.

According to officials in the power ministry, all proposals for putting up mega power projects will be scrutinised by the Justice PN Bhagwati committee. The power ministry has also announced that it will soon come out with a policy paper on mega hydel projects. The recommendations of the Sabamurthy committee on attracting investments in the country's hydel sector is under the consideration of the ministry. The Sabamurthy committee has recommended that the government should not rely solely on the competitive bidding route but should also consider the MoU route. This is due to the high risk involved in the initial years as well as the difficulty at arriving at the actual costs of setting up the project. Currently, less that 25 per cent of the total power generation is hydro-based, which the government has proposed to take up to 40 per cent by the end of the tenth plan.

It has been estimated by the power ministry that potential hydro schemes involves an investment of Rs 18,000 crore. The schemes include 510 MW Teesta project, 90 MW Loktak and 300 MW Chamera-II power projects of National Hydro Power Corporation (NHPC), NEEPCO power projects in the north-eastern sector like 60 MW Turial and 210 MW Tuival and 600 MW Kameng project. Other hydro projects identified are the 400 MW Koteshwar project and 1000 MW Tehri stage-II project to be put up by Tehri Hydro Development Corporation (THDC) in Uttar Pradesh.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.