Uncertainty over policies on land acquisition and fuel allocation, and the poor financial health of state-owned electricity distributors has forced the country’s largest power equipment maker Bharat Heavy Electricals Ltd (Bhel) to defer a plan to promote a finance company that will fund power projects.
“We have postponed our finance business plans. The board wanted to take a relook (at it) in great detail,” said a top Bhel executive, who did not want to be identified.
“There are no good projects in the market. We may look at it again after we see some policy movement, which is expected at the end of the year,” added this person, explaining why the company has deferred plans to start a non-banking financial company (NBFC).
India has an installed power generation capacity of 181,000 megawatts (MW), but still faces a shortage of 9.8% during the peak hours between 5pm and 11pm. Power companies have to deal with land acquisition problems, fuel supply constraints, increasing environmental activism and the deteriorating health of state electricity boards.
more at:
http://www.livemint.com/2011/10/07001137/Bhel-defers-plan-for-finance-f.html
Thursday, October 6, 2011
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