The business plan was finalised by the previous BSES board under the chairmanship of RV Shahi on June 25, 2001.
The projects considered for investments included 48 mw combined cycle power project at Goa of Reliance Salgaocar Power Company Limited, 500 mw pet coke-based independent power project (IPP) of Reliance Power Limited at Jamnagar, 3,960 mw coal-based IPP at the pithead at Hirma promoted by Southern Electric and Reliance Power Limited and 330 mw liquid fuel/gas based combined cycle power project of STI Power Company Limited at Guna in Madhya Pradesh. In Goa and Jamnagar projects, BSES had proposed to pick up 100 per cent equity, while its equity participation in the Hirma project was estimated at 50 per cent and for Guna project at 60 per cent.
The company had projected an investment of around Rs 3,000 crore to participate in at least six distribution projects in addition to Orissa.
The board had made it clear that the company would take up profitable ventures in distribution areas. Though the initial 3-4 years are expected to be difficult, these ventures are seen to be profitable in the long run for the company, the board noted.
BSES has already bagged certain circles of Delhi Vidyut Board for power distribution. The company had taken a decision to focus on city/town-based distribution privatisation opportunities. In addition to this, it had proposed to invest Rs 3,000 crore in transmission projects.
The previous BSES board had taken a decision to pursue projects available through the bidding route and simultaneously consider acquiring the projects from existing developers.
The BSES board had also taken a decision to participate in the development of some of the hydro-electric power projects, when some of the states had already offered development of such projects with an option that the power can be sold to other states.
Hydro-electric projects provide a good option through its low generation costs on a long-term basis as a good opportunity, and the company would participate in the development of some of these projects, the board said.
Analysts said that the company would have to rework the business plan, especially against the backdrop of a not-so-impressive balance sheet.
When contacted, BSESs chief of corporate communications Sharad Bailur said: We dont have any firm finalised plan as a certain amount of reorganisation is being looked at.