The board of state-run Bharat Heavy Electricals Ltd (Bhel) board has approved the company’s plan of starting a non-banking financial company (NBFC) to finance power projects, said B.S. Meena, secretary, department of heavy industries (DHI).
Bhel had a net profit of Rs.4,287 crore on a revenue of Rs.34,050 crore in the 2010 fiscal, and has a cash surplus of Rs.10,000 crore. Bhel plans to apply for a licence from the Reserve Bank of India.
“The company will primarily play a role of facilitator to Bhel, but it will be open to everybody. This NBFC will lend to state electricity boards and others to buy power generation equipment from Bhel,” said Meena.
The 11th Plan (2007-12) has set a target of adding 78,577MW of power generation capacity, requiring at current estimates, some Rs.10.31 trillion of investment. According to the power ministry, the government expects a Rs.4.51 trillion funding shortfall. With the funding ability of Indian institutions being stretched, adding capacity hinges on the ability to mobilize debt.
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http://www.livemint.com/2010/12/09234358/Bhel-board-approves-plan-to-se.html?atype=tp
Thursday, December 9, 2010
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