Business Daily from THE HINDU group of publications
Tuesday, Apr 17, 2007
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Business Daily from THE HINDU group of publications Tuesday, Apr 17, 2007 ePaper |
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Railways Industry & Economy - Power Corporate - Alliances & Joint Ventures Rlys, NTPC may ink pact for Nabinagar plant soon Mamuni Das
New Delhi April 16 The Railways and NTPC are likely to sign a new MoU for setting up a captive power plant at Nabinagar within six months. The joint venture company, called Bharatiya Rail Bijlee Company, will set up the 1,000-MW plant. NTPC will hold 74 per cent in it, while the Railways would own the rest.
CHEAPER POWER
The Railways requires 2,200 MW for its entire network. Currently, it pays Rs 4.22 per unit (average all-India) for its traction needs. However, with the setting up of this captive power plant, it would get power at Rs 2.51 a unit, which is 40 per cent cheaper. The cost per unit may further go down to Rs 2.39 if the joint venture gets mega-project status. "The new agreement is being worked out. The validity of the earlier MoU, which was expiring in February, has been extended till August," Mr Ramesh Chandra, Member (Electrical), Railways, told Business Line. Reworking of the MoU is required since the earlier proposal envisaged a higher stake for the Railways (51 per cent). "We are working on a fresh MoU, based on the Cabinet proposal that was cleared, to form the joint venture company," Mr Chandra added. In February, the Cabinet Committee on Economic Affairs (CCEA) had approved a joint venture between NTPC and the Railways for setting up a Rs 5,352.5-crore thermal power plant at Nabinagar in Bihar. The cost of Rs 5,352.5 crore includes interest during construction of Rs 624.6 crore and working capital margin of Rs 103.1 crore. The company will have seed capital of Rs 10 crore and authorised capital of Rs 1,605.75 crore. NTPC will invest Rs 1,188.26 crore while the Railways will chip in with Rs 417.50 crore towards the equity.
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