(a) the details of companies and corporations in the power sector who have been extended counter guarantee by the Union Government during the last two years;
(b) whether the counter guarantee in some cases have been extended on revised procedure;
(c) if so, the reasons thereof;
(d) the details of companies who have been denied counter guarantee on revised procedure; and
(e) the reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) to (c): Counter guarantee of the Government of India,
through the revised procedure, has been issued in August, 1998 in
the case of the Visakhapatnam Thermal Power Project (1040 MW) of
M/s Hinduja National Power Company Limited (HNPCL) in Andhra
Pradesh, Bhadravati Thermal Power Project (1082 MW) of M/s
Central India Power Company (CIPCO) in Maharashtra and the 250 MW
single unit lignite based Neyveli Thermal Power Project of M/s
ST-CMS Electric Company in Tamil Nadu. The revised procedure was
adopted as the earlier procedure for issue of counter guarantee
was found to be resulting in interminable delays that had
financial and cost implications. The revised procedure has the
following advantages:
(i) it reduces the return on capital and thus the resultant
tariff.
(ii) it puts competitive pressure on the private power
project`s capital cost.
(iii) it eliminates the annual energy charge exposure of the
Government of India in the Counter Guarantee.
(iv) it allows the State Government to finalise a better
capital cost after the counter guarantee.
(d) & (e): Of the eight private power generation
projects involving foreign direct investment which were chosen
for extension of counter guarantee of Government of India in
1994, Counter guarantee of Government of India has been extended
to Jegurupadu Combined Cycle Gas Turbine (216 MW) of M/s. GVK
Industries Limited, Ib Valley Thermal Power Project (500 MW) of
Ib Valley Power Private Limited and Dabhol Combined Cycle Gas
Turbine(phase-I) (740 MW) of M/s. Dabhol Power Company under the
pre-revised procedure. M/s. Spectrum Power Generation Limited
withdrew their request for counter guarantee for their 208 MW
Godavari Combined Cycle Gas Turbine in Andhra Pradesh. The Ib
Valley Project was re-negotiated by the Government of Orissa
before construction could commence and, therefore,
techno-economic clearance was issued afresh to this project on
26.2.1999. Issue of Counter Guarantee of Government of India
under the revised procedure was approved in the case of the
Mangalore Thermal Power Project of M/s. Mangalore Power Company,
on 22.12.1999. As such, none of the eight projects selected have
been denied counter guarantee either on the earlier procedure or
on the revised procedure.