As per the agreement between the two companies, KPCL would offer services to hydro power projects being bagged by the Tanzanian firm. The consultancy work of the company includes operation, design and maintenance services of the projects in Tanzania and Uganda.

Madhwani International is likely to clinch two projects with a size of 100 mw and 200 mw each shortly in East Africa. These projects would be set up on the banks of Nile river. The Madhwani group is also looking at bagging a 1500 mw power project in Africa.

``The lack of sufficient opportunities in Karnataka had prompted the company to seek other greener pastures in the hydel segment outside the country. We are also planning to enter into alliances with companies in Bangladesh and Nepal,'' KPCL managing director K Jairajsaid.

Plans are afoot to enter into other states in the country. The company has already identified Himachal Pradesh in India to explore more opportunities for offering services in hydel power ventures. During the fiscal 1998-99 KPCL's consultancy cell had posted a turnover of more than Rs 2 crore.

KPCL's last venture in the hydro segment in the state would be Kadra project with a capacity of 3X50 mw. With a total investment of Rs 400 crore the third unit of the Kadra project would be dedicated to the country on July 3 by the state government.

In fact, the company had been facing hurdles for completing the Kadra units on schedule as the World Bank in 1992-93 had stalled its funding programme for the project. However, KPCL had raised funds from banks and other financial institutions and completed its first unit in June 1997 and second unit in October 1998.

KPCL's Kodasalli 3X40 mw unit will be completed by the end of July with an outlay of Rs 360 crore. For the purpose, the company had raised fundsfrom Power Finance Corporation.

``We expect to complete the first unit of the 4X60 mw Gersoppa power plant with a total cost of Rs 800 crore by March 2000. With all these projects in hand, KPCL will be investing about Rs 600 crore during the current fiscal against a capital expenditure of Rs 700 crore during 1998-99'' Jairaj said.

Bond issue to fund expansion

KPCL has decided to float an infrastructure bond issue worth Rs 200 crore in October to fund the company's ongoing expansion plans. The company is currently in talks with the State Bank of India and Housing and Urban Development Corporation (Hudco) to fully subscribe the bond issue. The company's total capex during the current fiscal would be Rs 700 crore. KPCL has already tied up with leading financial institutions and banks to raise the funds.