Officials sources said that ICICI had initiated talks with leading public sector power companies like the National Thermal Power Corporation (NTPC), Power Grid Corporation of India Limited (PGCIL) and the National Hydroelectric Power Corporation (NHPC) for extending financial support to them for their forthcoming projects.

While NTPC has been offered a line of credit of Rs 1,000 crore, NHPC has been offered around Rs 1,500 crore and Power Grid has also been offered similar quantum of funds.

In addition to ICICI, a host of well known foreign banks including Society General of France, Natwest Bank of UK and ANZ Investment Banks are also learnt to be wooing the national power companies with similar offers.

NTPC's funds requirement for the NinthPlan stand at Rs 10,159 crore for its ongoing projects including the Rs 2,754 crore, 1000 mw Vindhyachal Stage-I, Rs 1,280 crore, 420 mw Unchahar Stage-I, Rs 1,311 crore, 350 mw Kayamkulam, Rs 3,651 crore, 1000 mw Simadhari and Rs 1,163 crore, 400 mw Faridabad power project.

The total funds requirement for the new projects identified by NTPC stands at Rs 34,493 crore up to 2007.

Whereas, most of the projects of NTPC are funded by international lending agencies like the World Bank, ADB, KFW, OECF, SFD, the ongoing impact of sanctions may force the company to explore other sources of funding, one of which is by way of loans from the financial institutions and banks.

NTPC officials, on being contacted, confirmed that ICICI has offered them financial support to the tune of Rs 1,000 crore. Under the Rs 1,500-crore line of credit offered by ICICI to NHPC, the latter will pose its Rs 2,600 crore, 510 mw Teesta-V project for part financing by the financial institution. NHPC is also in talks with various otherbanks and finance companies for its Teesta-V project.

Other projects, as per NHPC officials, that can be posed to ICICI include the Parbati hydro power project in Himachal Pradesh where a total capacity addition of 2100 mw is envisaged under various stages of implementation.

In order to meet its short-term financial requirements for 1998-99, Power Grid has tied up for a Rs 250-crore loan with the State Bank of India along with a commitment of another Rs 200 crore from LIC.

However, sources said that in the wake of economic sanctions imposed on India, Power Grid is contemplating to raise funds to the tune of Rs 2,000 crore by way of domestic borrowings.

ICICI offer will form part of this borrowing plan to support its forthcoming projects which includes setting up various inter-regional transmission links for completing the first phase of formation of national grid.

Besides funding the public sector power projects, ICICI has been actively involved in funding the IPP power projects as well. Thisincludes financing of power projects such as the 260 mw Jindal Tractabel power project in Karnataka, the 578 mw, Bina Power project in Madhya Pradesh, the 250 mw fast track project of ST-CMS in Tamil Nadu and the 703 mw Dholpur power project of RPG group in Rajasthan.

ICICI is also learnt to be negotiating another 920 mw power projects of AEC in Orissa and 500 mw Balagarh power project in West Bengal.

It may be noted here that since 1993-94, institutions have provided financial assistance to 35 power projects of the IPPs with an aggregate installed capacity of about 13439 mw and with a capital investment of Rs 57,028 crore.