The list of projects include : the first phase of Bagasse-based co-generation plants - 400 mw, total capital cost-Rs 1,600 crore, equity share -Rs 500 crore (76 per cent), Nagarjuna Construction Company (NCC) power project - 230 mw and Gautami Combined Cycle Power Project -360 mw -the combined capital cost for these two projects -Rs 1,400 crore, equity share of Rs 294 crore (70 per cent), Mukand, Korba - 420 mw, Rs 2,010 crore, equity-Rs 400 crore (70 per cent), Goindwal Sahib, Punjab - 530 mw, Rs 2,400 crore, equity -Rs 365 crore (51 per cent), DC Power, Kerala -103 mw, Rs 350 crore, equity -Rs 53 crore (51 per cent), Krishnapatnam coal based thermal project -520 mw, Rs 2,000 crore, equity -Rs 301 crore (51 per cent) and Ratlam DG, Madhya Pradesh -118 mw, Rs 504 crore, equity -Rs 76 crore (51 per cent).

Top BSES sources told The Financial Express that a presentation prepared by corporate planning and finance departments was recently made before the BSES board. The final decision in this regard is expected after series of meetings within various departments. "However, one thing is very clear at the BSES that it would like to spread its wings and increase its presence across the country," sources added.

In the Maharashtra government sponsored co-generation project, BSES had considered options of either to finance 100 per cent equity requirement out of its own resources or raise and own not less than 76 per cent of the equity and balance to be shared with host sugar mills, the loss-making Maharashtra State Electricity Board and the state government. BSES has agreed to pick up 30 per cent equity at this point of time in the co-generation project.

As far as Nagarjuna and Gautami power projects are concerned, BSES wants that these projects should be combined to enable it to make use of its current experience with V 94.2 machine.

The company feels that with the present allocation of gas by the state-run Gas Authority of India Limited (Gail), it would be feasible to commit a higher plant load factor.

In 103 mw DC power project, BSES has already acquired in principle letter from the Kerala State Industrial Development Corporation for participating in equity to the extent of 11 per cent. BSES feels that the DC power project, which has already received an escrow cover, can be executed quickly in terms of replicating most of concepts already straightened out at Kochi.

According to BSES, the 420 mw thermal power project Korba has an advantage of location, as it being the pit-head project all the infrastructure facilities are available. All the clearances are in place and allotment of distribution areas in lieu of escrow arrangement are under discussion.

BSES strongly feels that its equity participation in the 530 mw Goindwal Sahib project would be advantageous as it is the only independent power project in the private sector in Punjab and a financial tie-up has already been achieved. The GVK Group has already signed a power purchase agreement with Punjab State Electricity Board on April 17, 2000 and it is shortly expected to sign EPC contract agreement with KHIC, Korea. Favourable indications have been received for the rupee debt from IDBI, ICICI, SBI, UTI, Power Finance Corporation and others.

However, according to BSES the negative points are non availability of adequate escrow cover and transportation of coal from very distant place.

Furthermore, as disposal may be a problem as the site is surrounded by agricultural land.

In case of Krishnapatnam project, BSES feels that the coast-based power plant near Krishnapatnam and Chennai ports is important for its strategic location. In addition to this, imported and Indian coal can be used as a raw material. All contracts are still open and these contracts can be improved upon.

However, according to the company, all clearances from ministry of environment and forests, pollution control board, airport authority and Central Electricity Authority would have to be revalidated. Moreover, power purchase agreement with the erstwhile Andhra Pradesh State Electricity Board way back in 1994 would have to be renegotiated as the newly formed Andhra Pradesh Transmission Company has been insisting upon the renegotiation. BSES is quite keen to pick up equity in 118 mw Ratlam project as it strongly feels its conversion into gas would benefit in terms of heat rate and operation and management contract. However, according to BSES, views the though the sulphur content of heavy furnace oil is generally less than 2 per cent, it is not guaranteed by Indian suppliers and thus it would have to be imported. Degradation of heat rate is allowed at 2 per cent flat for 15 years which would be advantageous to operation and management contractor.