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Crisil appraises financial viability of WBPDCL, WBSEB

Indrani Dutta

CALCUTTA, Dec. 13

CREDIT Rating and Information Services India Ltd (Crisil) is evaluating the financial viability of two State-controlled power agencies -- West Bengal Power Development Corporation Ltd (WBPDCL) and West Bengal State Electricity Board (WBSEB).

Power department sources said that this exercise was necessary in the context of the financial closure of the second stage of the 1,050 MW Bakreswar Thermal Power project.

This part of the project, involving the setting up of two units of 210 MW each, is being implemented as a joint venture by the WBPDCL through an equity tie-up with the US-based Ogden Energy Pacific Ltd and the city-based DCL-Kuljian group.

The IDBI, which is the lead FI for the debt component, would finalise its exposure only on the basis of Crisil's assessment, sources said.

The evaluation of the WBSEB, alongwith the WBPDCL, became necessary since the former purchased the WBPDCL's entire generation and its capacity to pay had to be ascertained. As such, the draft power purchase agreement, which had been drawn up, was also co ming up for scrutiny. Crisil would also take a look at the power demand scenario in the State.

The scope of work of the consortium led by the Mitsui -Babcock combine, which had won the EPC contract, was also slated to be examined, according to sources.

The cost of this part of the project had been pegged at Rs 1,621 crore. While 31 per cent would be met by equity, the balance would be met through debt. The WBPDCL holds 26 per cent of the equity, while Ogden has 60 per cent. The balance is the share of the DCL-Kuljian group.

Apart from domestic FIs, a portion of the debt is to be sourced from the Exim Banks of the US and Japan.

It may be mentioned here that the two units, now being implemented, were slated to be the first two units of the Bakreswar project, which has its own share of controversy.

Even as the West Bengal Government took up the implementation and erection of boilers made by ABL, the erstwhile OECF agreed to fund the project but only if it was a greenfield one. A clever transposition saw the reversal of the unit positions, after whi ch work on the original first two units was halted and the remaining three units came to be regarded as units 1,2 and 3. This stage, being implemented by the WBPDCL with Japanese assistance, is now in its final phase.

However, at the time of abandonment of work on the first two units (now four and five), it was found that a sum of Rs 85 crore had already been spent. These two structures have been maintained and are proposed to be utilised during the erection of the se cond stage. The commissioning schedule has been fixed at 36 months from the zero date.