"The criteria for private participation will be different for each project and will depend on the size and assets of the board at the various sites," sources said. In some cases, the board will offer projects for joint ventures with local and foreign companies, they added. Other options to raise funds include lease financing, loans from the Power Finance Corporation (PFC) and plan allocations. Wherever joint ventures are planned, the MSEB will bring in its contribution to the equity in the form of assets.

These new projects are planned at Bhusaval, Nashik, Uran, Paras, Parli and Khaperkheda where the MSEB already has plants running. In addition, seven short-gestation powerprojects have obtained in-principle clearance from the state government and the Central Electricity Authority last year.

Though some of these projects are of a large size, they may be labelled as extensions of the existing plants. One reason for citing the new capacity at the old locations is to avoid having to go through the cumbersome clearance procedures -- especially in relation to environmental clearances.

Besides, they will also benefit from the established infrastructure in terms of availability of land, water, power and transport.

However, the seven short-gestation plants of around 150 mw each are all greenfield ones which will be executed by independent power producers (IPPs). The state had invited tenders for these early last year. These liquid fuel-based projects are still awaiting fuel linkages. The Union minister of power recently assured the state government that his ministry would assist the projects in obtaining fuel allocations.

Most of the coal-based projects, apart from havingin-principle clearances, have also received approvals for fuel linkage.

As per an energy survey conducted by the board, by the end of the 10th plan (2002-2007), the peak demand will be around 18,311 mw. This will require an overall capacity of around 26,000 mw of the installed capacity. Given the long gestation periods of power projects, steps for capacity addition have to be initiated now, sources said, adding that the shortfall in supplies would be met through the purchase of electricity from other sources such as NTPC and NPC.

The large-sized Bhusaval project, which will have two units of 500 mw each, and the 500 mw expansion at Nashik will be part-financed through lease financing. The rest of the money will come from plan allocation, PFC loans and other borrowings. The coal for the plants will come from new mines, and also imports.

While the Union minister of power recently sanctioned an additional two million tonnes of coal supply to MSEB's thermal power plants at Paras and Parli, he also committedcoal linkages for the Khapherkheda plant. The minister has also announced an expansion of PFC's exposure limit for Maharashtra from Rs 88 crore to Rs 424 crore for year 1998-99. This is primarily to provide financial assistance to the projects which fall under the renovation and modernisation (R&M) scheme.

The MSEB plans to set up a joint venture company for the 500 mw Khaperkheda power project in which the state will hold the majority stake. It will call for competitive bids for the 400 mw Uran power project. Additional land at the existing site has already been acquired and the water linkage has been approved by the Maharashtra Industrial Development Corporation (MIDC). The gas for the plant is likely to be purchased from Enron.

The Paras extension of 250 mw is also planned through a joint venture, with MSEB having a majority stake. Assets of the existing plant will be used as MSEB's equity share.

Engineering, procurement and construction (EPC) contracts will be granted through competitive bidding.The plant will be operated by the board without any retrenchment of the present staff.