He added that of the 68,000 mw, coal-based power projects would have a major share while the capacity addition of 18,000 mw would be possible through hydro-power projects. Shahi said that funding for the upcoming capacity addition would not be a problem as in case of proposed seven ultra-mega power projects with the capacity of 4,000 mw, lenders have come forward to fund these projects with an investment of Rs 20,000 crore. .
Shahi said the proposed IPO of PFC, with non-performing assets of 0.22%, is expected to be successful like PTC and NTPC. As reported by FE, PFC is offering 117,316,700 equity shares at Rs 10 each to the public through 100% book-building process and the price band has been fixed at Rs 73 to 85.
After PFC, Shahi said IPOs of other central public sector undertakings - namely National Hydro Eleftric Power Corporation (NHPC), PowerGrid Corporation, Rural Electricity Corporation (REC), North Eastern Electric Power Corporation (Neepco) - would also hit the market during 2007-08. The issues of PFC and other undertakings would constitute 10.22% each fully diluted post issue capital of these companies.
The power sector will need an investment of $100 billion if it goes in for a capacity addition of 68,000 mw during the 11th Plan