The Hindu Business Line : Maharashtra power distribution company to raise Rs 3,300 cr

MAHARASHTRA State Electricity Distribution Company Ltd (MSEDCL) is seeking to raise Rs 3,300 crore from Power Finance Corporation Ltd (PFC), Rural Electrification Corporation Ltd (REC) and urban cooperative banks in order to upgrade its power distribution infrastructure in the State.

Talking to Business Line, Mr Sanjay Bhatia, Managing Director, MSEDCL, said PFC is likely to fund the urban projects while REC will go with the rural projects.

Once the lenders are finalised, the memorandum of understanding for raising the funds will be signed, in all likelihood by first week of December.

This first phase of distribution revamp is expected to be over by 2007.

The funds would be primarily utilised in overhauling the existing infrastructure as also creating additional capacities. The load profile for every electrical sub division in the State has been computed and based on this, the expansion plans have been made and funds would be allocated accordingly, he said.

"For the first time we would be engaging the best project management firm in the country who would be undertaking monitoring of the projects, especially quality management. We are already in touch with about seven project management firms and soon will decide which fits our requirement. The project mangers would liaison with our engineers for the implementation" he said.

In the last nine years, there has been no upgrade in power sector infrastructure in the State and the transmission and distribution losses are currently at 35.2 per cent. MSEDCL is also planning to raise another Rs 7,500 crore once the first phase is completed for the complete overhaul of the power distribution system in the State. It would take till 2007 to clear the current backlog in the State power distribution network, Mr Bhatia said.

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