The US power company's senior officer, Anil Patnaik, is confident that AES will be able to complete the deal within 90 days after getting the state government's clearances and will be in a position to take over the management of the OPGC by the end of 1998. According to him, the state government has yet to inform AES about the cabinet's approval.

If AES acquires 49 per cent stake in OPGC, it will be the biggest ever deal made in the power sector in India. The American utility concern has quoted a little over 2.5 times for the shares whose face values add up to Rs 240 crore.

With a 49 per cent stake, AES will have its managing director in OPGC. The chairman and finance director would be nominated by the stategovernment.

With this acquisition of stake in OPGC, AES will enter power generation business in India.

OPGC now owns two thermal power generating units of 210mw each at Ib Valley in Orissa's Jharsuguda district. The corporation has posted a net book profit of Rs 80 crore in 1997-98 with both the units running at an average of 85 per cent plant load factor.

OPGC is also proposing to set up two more units of 210mw at the present site as part of its expansion plan. The expansion project is likely to cost Rs 1700 crore.

Meanwhile, AES's fast-track project -- the 2x250mw thermal power plant at Ib Valley -- is taking shape with the Centre taking it seriously at last.

The Orissa cabinet has decided to plough back Rs 300 crore from the disinvestment money in the OPGC expansion project. The cabinet proposed that the government should help Gridco by providing funds to clear the outstanding dues of OPGC.