The Export Import Bank of China, Bank of China, China Development Bank and Industrial and Commercial Bank of China, which agreed to finance deals aggregating $12 billion for supply of coal-powered thermal power units by Chinese equipment makers to Reliance Power, are also talking to other Indian infrastructure companies for financing imports from China, sources here said.
The interest shown by the Chinese development financial institutions fits in with India?s bid to attract foreign funds for infrastructure projects, where investments of $1 trillion are envisaged for the 12th five-year Plan period (2012-17). Reliance Power?s chief executive officer JP Chalasani told FE that Chinese DFIs? decision to finance its equipment imports from that country would be a bonus. With finance minister Pranab Mukherjee shooting down a proposal to impose duty on Chinese power equipment, the cost of the supercritical Chinese plants would remain attractive for a few more years, he said.
Chalasani, however, added that the company could still look at American and European manufactures for gas-based power plants where they are more competitive. Recently, Reliance Power awarded a Rs 10,000-crore equipment order to GE for the expansion of its gas-based plant at Samalkot in Andhra Pradesh.
?Indian companies like Bhel are competitive in sub-critical plants. However, it would take a while for the country to be self-sufficient and globally competitive in the super critical segment,? Chalasani said. What makes the SEC deal competitive is it involves a package that comprises long-term supply of spares, O&M, training of manpower, he said.