Mumbai, Aug 20: The Tata Electric Companies (TEC) have reported a 2.7 per cent increase in revenue to Rs 808 crore in the first quarter of the current financial year compared to Rs 787 crore in the same period last year.

However, the internal rate of return of the company is likely to come down to 16 per cent from the present 17 per cent. Announcing this at the company's annual general meeting here today, TEC chairman HN Sethna said the company has good growth prospects in future with a number of the projects in the pipeline. The company will also appoint a managing director during the year, said Sethna.

TEC has also decided to pay Rs 5 crore to Tata Sons as royalty for using the name, he said.

Replying to a query from a shareholder, Sethna said the company may also consider a bonus issue before the next annual general meeting of the company if some of its projects are finalised.

The company is likely to file a legal case against BSES Ltd the Mumbai-based power company, on some issues, he said, without giving details.

He said TEC, consisting of Tata Power, Tata Hydro and Andhra Valley, has plans to divert 60 per cent of its investments in power projects outside Maharashtra. Since there are not many opportunities in the state which will not have power deficits problem in future if the proposed projects are implemented, the company is considering proposals from other states.

The company is evaluating the possibilities in Tamil Nadu, Gujarat, Uttar Pradesh and Bihar. TEC is also concentrating on the demand for captive power projects and plans to bid for a number of such proposals, he said. Sethna said the company is holding talks with the state government for the proposed 450 MW Bhivpuri power project in Maharashtra.

It may also bid for the some of the short-gestation power projects announced in the state early this year.

The company has also plans to enhance the capacity of the 67.5 MW power station at Jojobera in Jamshedpur by adding another 240 MW unit. The company took over the power unit form the Tisco.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.