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Tata Power-PGCIL join hands
New Delhi, June 30: In first kind of public-private collaboration in the power transmission sector, state-owned Power Grid Corporation and Tata Power have joined hands for setting up 1200 km long power transmission line.
New Delhi, June 30: In first kind of public-private collaboration in the power transmission sector, state-owned Power Grid Corporation and Tata Power have joined hands for setting up 1200 km long power transmission line.
The project, costing about Rs 1980 crore including sub-
stations, is to evacuate power from the 1020 mw Tata
hydro-electric power project in Bhutan to the eastern region.
PGCIL would hold 49 per cent equity of the project while 51
per cent would be held by the private partner Tata Power.
Project investment for the joint venture portion is estimated at Rs 1100 crore, PGCIL CMD R P Singh told reporters here, adding that PGCIL would have the exposure to the tune of Rs 162 crore and Tata Power would contribute Rs 168 crore towards equity participation.
The rest of the money, Rs 770 crore, would be financed by various bankers and financial institutions including IFCI, ADB and SBI, Singh said.
"Banks and Fis have agreed to extend the loans without any guarantee either from PGCIL, Tata Power or government."
The project, slated to be completed by mid-2006, is likely to achieve financial closure by September this year, Singh said adding that "this beginning of public-private participation in power transmission should be a trend-setter for future investments."
Bureau Report
Project investment for the joint venture portion is estimated at Rs 1100 crore, PGCIL CMD R P Singh told reporters here, adding that PGCIL would have the exposure to the tune of Rs 162 crore and Tata Power would contribute Rs 168 crore towards equity participation.
The rest of the money, Rs 770 crore, would be financed by various bankers and financial institutions including IFCI, ADB and SBI, Singh said.
"Banks and Fis have agreed to extend the loans without any guarantee either from PGCIL, Tata Power or government."
The project, slated to be completed by mid-2006, is likely to achieve financial closure by September this year, Singh said adding that "this beginning of public-private participation in power transmission should be a trend-setter for future investments."
Bureau Report