US Cos seeking interest in power projects: Shinde

Several US companies have evinced interest in helping set up Ultra Mega Power Projects in India, Union Power Minister Sushil Kumar Shinde said.

A large number of US power sector companies, including GE, ABB, Caterpillar and AES have evinced interest seeking participation in setting up of five Ultra Mega Power Projects of 4000 MW in India, Union Power Minister Sushil Kumar Shinde said in Washington on Thursday.

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The Power Finance Corporation is establishing shell companies to set up these projects and obtain all necessary regulatory clearances and fuel linkages.

"The Ministry is inviting private investment from the US in these shell companies. The whole process of selection of private investors in these companies will be completed by January 2007," Shinde told reporters at the Indian Embassy.

In a bid to make the power sector more accessible to the private investors, Shinde said his Ministry has constituted an Inter Institutional Group to facilitate the financial closure of private sector projects. This group has provided a forum for interaction amongst promoters of power projects, banks, financial institutions and the Ministry of Power.

The financial closure of 13 power projects with an aggregate installed capacity of about 5000 MW has been facilitated by this group. The group is presently facilitating financial closure of another 10 projects with a total installed capacity of 11,432 MW, he added.