London, July 16: Britain's PowerGen Plc on Friday said it was to buy a further 46.3 per cent stake in the Gujarat Torrent Energy Corporation (GTEC) which owns a 655 megawatt dual fuel-fired power station in Gujarat, northwest India.The move by PowerGen follows a decision by the Indian group Torrent Power to sell its stake. PowerGen will acquire Torrent's 46.3 per cent share of GTEC for 159 million pounds ($249.2 million)taking its interest from 27.8 per cent to 74.1 per cent.
The transaction will be funded from a combination of PowerGen's existing corporate facility and a local rupee facility, PowerGen said.
"India has vast potential and today we see it as the largest market in the world for independent power projects. Our further investment in GTEC puts us in a strong position to grow as demand for power increases whilst generating a strong cash stream for future investment," Ed Wallis, chairman of PowerGen, said in a statement.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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