The BSES had already received the green signal for setting up a 250-mw lignite-based power plant near Neyvelli at Tamil Nadu. The project is estimated to cost Rs 1,200 crore. "The negotiations for signing the power purchase agreement have reached an advanced stage. We will sign the agreement for the 250-mw soon," he said.

Shahi added that a Coimbatore-based textile company had also evinced keen interest in investing in the venture. But he refused to identify the company or the details of the proposed tie-up.

BSES chairman said the company was all set to make a major foray into power generation, transmission and distribution in South India and other parts of the country. The proposal toenhance the installed capacity of the power project in Neyveli was part of the BSES's investment of around Rs 2,000 crore in power generation projects alone in South India.

The other major project planned by the company was a 230-mw project in Andhra Pradesh. The project is estimated to cost around Rs 1,000 crore. The company is also making a foray into the non-conventional sector by setting up a 7.5-mw wind energy project in Karnataka.

Shahi said the wind farm was expected to operate in plant load factor of around 30 per cent. The company was keen on taking up the transmission and distribution facilities in Haryana, Delhi, Uttar Pradesh, Andhra Pradesh and Karnataka. The BSES chairman pointed out that the company had already entered the distribution system in Orissa. This was the first State in the country to liberalise the transmission and distribution system.

Similarly, the governments in Delhi, Haryana, Andhra Pradesh, Uttar Pradesh and Karnataka had also expressed their willingness to privatise thetransmission and distribution system. "We are ready to take up the responsibility in these States too," he added.