The capex plan includes borrowings of around Rs 1,000 crore. MSEB proposes to raise Rs 300 crore from infrastructure bonds to double the capacity of the 420 mw Khaperkheda plant. The first tranche of 100 crore with an option to retain the over-subscription has already been launched. The board hopes to generate Rs 175 crore from this issue, scheduled to close on June 25 and now extended to July 12.

MSEB also expects to get around Rs 300 crore from the Power Finance Corporation, Rs 160 crore from the Rural Electrification Corporation, around Rs 85 crore from the LIC and Rs 15 crore from IDBI. These figures have been almost constant for the past many years. PFC and REC havealready committed themselves to lending Rs 150 crore and Rs 25 crore each for the Khaperkheda plant. While PFC will sanction funds for equipment purchased by BHEL, REC is investing in MSEB's bond issue.

During 1998-99, MSEB borrowed around Rs 938 crore and was provided Rs 200 crore from the state government. There will be an encore this year and will invest around Rs 900 crore from internal accruals.

Besides strengthening its transmission and distribution system, the board is setting up transmission lines to evacuate power from new power stations. It plans to spend around Rs 225 crore on rural electrification and Rs 365 crore for distribution.

The expansion of the two power plants is part of MSEB's plan to add 9000 mw to the state grid by 2005. According to the board, the demand for energy is growing at eight per cent annually and the peak load by 1000 mw annually. By 2002, this is estimated at about 13,147 mw and by the end of the tenth plan, this will go up to 18,311 mw. To meet this additionalrequirement, MSEB has planned new projects and expand existing ones.

To fund its expansion projects, the board will opt for the JV route where the cost of the existing infrastructure will be its equity contribution.