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POWER DEAL: Mr R. Sridharan (right), MD & CEO, SBI Capital Markets, and Mr A.K. Barman, IAS, Chairman, Damodar Valley Corporation, at a press conference held in Mumbai - Shashi Ashiwal

Mumbai , Nov. 1

SBI Capital Markets Ltd will syndicate funds for Damodar Valley Corporation (DVC) to set up power stations with a capacity of 3,500 MW. DVC proposes to set up 4,500 MW capacities in the Eleventh Plan.

DVC will expand its existing station at Mejia by adding a 1000 MW `B' station to supply power to Delhi and nearby areas. Power stations will be set up at Bokaro (500 MW), Durgapur (1000 MW), Koderma (1000 MW) and Raghunathpur (1000 MW). Financial requirements for Mejia - B and Bokaro projects have already been tied up.

Setting up of the plants will require an investment of Rs 20,000 crore of which Rs 6,000 crore would be through internal accruals and Rs 14,000 crore will be raised from outside, said Mr A.K. Barman, Chairman, DVC. Of the Rs 6,000 crore equity component, Rs 3,500 crore are available with DVC.

SBI Caps has raised around Rs 5,000 crore with the SBI group chipping in with Rs 700 crore. The SBI Group has pledged another Rs 1,000 crore. Nine public sector banks including IDBI Bank and LIC have contributed the rest, said Mr R. Sridharan, Managing Director and CEO, SBI Cap. "States like Delhi, Punjab, Haryana and Madhya Pradesh are looking to a strategic association with DVC for good quality, cheap power to fuel their growth plans. DVC would like to gain from the expertise of SBICAP in arranging funds for such infrastructure projects," said Mr Barman.

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