According to him, BSES would have 5,000 mw generation capacity by 2007 with presence in half a dozen states in distribution. The company will also foray into transmission thanks to the opening up of this sector two years ago.

BSES will invest nearly Rs 2,000 crore in the combined cycle power plant at Saphale in Thane district. The company, which is expected to get a clearance from the Maharashtra State Electricity Board, plans to complete the erection in 18 months. BSES will also invest another Rs 2,000 crore in setting up thermal power plants in Amravati district, Vidharaba. On the distribution front, it proposes to invest Rs 400 crore in Orissa where it has already acquired three companies. Shahi said the funding for the distribution project unit will be possible from the World Bank, IFC and the PowerFinance Corporation. The company will try to increase its presence in the distribution in Uttar Pradesh, Rajashthan, Karnataka and Haryana which have already undertaken power sector reforms. BSES plans to make an investment of Rs 400-500 crore in the transmission field. In distribution and transmission, the annual investment will be around Rs 100 crore.

On BSES Telecom's foray into optic fibre cable networks, Shahi said an investment of Rs 250 crore has been planned for the next two years. In the third year, another Rs 100 crore will be invested.

Meanwhile, the Power Grid Corporation has already offered to form a joint venture for the recently opened NLDO sector. Power Grid would lay an optic fibre cable of 7,000 km initially.