PowerGen's stake in GPEC is at 88 per cent, and that in Bina Power and Spic, the stake stands at 49 per cent and 25 per cent respectively.

Although PowerGen India head Jerry F Groov-White acknowledged that it is selling its assets worldwide in an effort to mop up funds to buy out the $3.2 billion LG&E Energy Corp, he declined to comment on the fate of the company's holdings in the three JVs. There is also no estimate as to how much amount PowerGen plans to garner through asset sales in India.

Industry analysts feel that the asset sales move could hit a roadblock as PowerGen may not achieve success in doing so. ``PowerGen may have to go in for a distress sale, as most of these JVs are either under litigation or have not achieved financial closure,'' analysts said.

Officials at PowerGen were tight-lipped on the fate of the power projects where they had equity participation. An official from the UK-based power company said that they are working towards achieving the financial closure for the Bina power supply company in Madhya Pradesh. The official, however, declined to comment on PowerGen's intention to sell its 49 per cent stake in the company. PowerGen has also evinced a keen interest in the Spic group's power project in Tuticorin in Tamil Nadu, where the company has a 25 per cent stake which could go up to 74 per cent. The Tuticorin power project also seems to have headed towards a dead end as the government approvals required for the financial closure seems to be far from coming.

In GPEC, the Tata Electric Companies is reported to be in talks to buyout the company for about Rs 1,900 crore. TEC will assist in PowerGen's move to mop up funds.