Rural Electrification Corporation, a Navaratna-status central PSE under the Union power ministry, is looking at picking up stake in Udangudi Power Corporation Limited (UPCL), which is implementing 2X800 mw super critical thermal power project at Tiruchendur taluk in Toothukudi district of Tamil Nadu with an estimated investment of Rs 8,700 crore. Union power minister Jairam Ramesh will be laying the foundation stone on Sunday for the same.
The project, expected to be implemented in a debt/equity ratio of 70:30, has equity partners such as Tamil Nadu Electricity Board and Bharat Heaviy Electricals Limited (Bhel) with 26% stake each in the equity. REC, apart from considering providing the entire debt portion of Rs 6,090 crore, will in all probability pick up substantial equity stake in this project, said sources close to the development.
When contacted, N Sasikumar, president and CEO, UPCL, said, ?We are in talks with number of financial institutions to take part in the equity portion, including REC. We have asked REC to provide the debt part of the project. We would also invite REC to become an equity partner in this project. We have to wait and see.?
He said the first unit of the project is expected to go on stream by early 2013 followed it with the second unit of 1X800 mw after six months. The company is waiting for all clearances, including the environmental one, he said.
A senior REC official said, ?The company is waiting for the detailed project report. Based on that, REC will decide on equity participation. We are talking to few institutions, including Power Trading Corporation. We will look at picking up some stake apart from considering financing the debt portion.?
Bhel will provide the entire equipment, including boilers and generators for the project.
The project, coming up in 760 acre, will have equity investors other than TNEB and Bhel and the state electricity board will execute and run this project.