AES plans to exit power generation business in Orissa

Dilip Bisoi

Bhubaneswar, Aug 8: US power major AES Corp, which has expressed its desire to withdraw from the power distribution business in Orissa, is apparently also planning to get out of the generation business in the state. The utility giant, which holds 49 per cent stake in Orissa Power Generation Corp (OPGC), is looking for a prospective buyer to offload the shares.

Sources in AES confirmed that talks had been initiated to sell its stake in OPGC, a generating company which owns a coal-fired thermal power station of 2 x 210mw capacity at Banharpalli in Orissa’s Jharsuguda district. Sources told The Financial Express that AES was talking to Reliance Power and some other private utility companies for selling the stake.

AES, which acquired the stakes from the Orissa government in October 1998, is free to trade in the shares as the three-year lock in period will come to an end in October 2001.

One of the first few foreign power companies to have come to India after the sector was opened up following the economic liberalisations, AES Corp descended on Orissa to set up a coal-fired thermal power project.