(a) whether the Government propose to provide counter-guarantee for the various 1000 Megawatt Power Projects;
(b) if so, the details thereof; and
(c) the time by which the final decision is likely to be taken in this regard?
(a) whether the Government propose to provide counter-guarantee for the various 1000 Megawatt Power Projects;
(b) if so, the details thereof; and
(c) the time by which the final decision is likely to be taken in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) to (c): A Statement is laid on the Table of the House.
STATEMENT
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF STARRED
QUESTION NO. 422 TO BE ANSWERED IN THE LOK SABHA ON 24.8.2000
REGARDING COUNTER GUARANTEE TO 1000 MW POWER PROJECT.
(a) to (c) : Government of India (GoI) announced a policy in
1991 aimed at encouraging the flow of private capital to the
power sector. This was due, among other reasons, to insufficient
resource generation and dwindling budgetary support in the face
of very large investment requirements in the power sector. To
instil confidence among the private power developers, GoI
considered issuing counter guarantees to private power projects
that were identified as developing rapidly. This counter
guarantee was a financial comfort to the investors that, in case
the State Electricity Boards, failed to pay for the power
purchased from private generators in accordance with the Power
Purchase Agreement (PPA) and the concerned State Government
thereafter did not honour its guarantee, GoI would make payments
and deduct the sum from the Central devolution to the State.
The GoI counter-guarantee scheme was developed as
a transitory measure to encourage private investment and it was
decided in 1994 to extend GoI counter-guarantee to eight
initial projects that had been cleared for bringing in foreign
investment in the power sector. These include three projects
having a capacity of more than 1000 MW. The details of these
three projects are given below:
S.No. Name of the project Capacity Estimated completed cost (MW) (as per techno-economic clearance given by CEA)
1. Visakhapatnam Thermal Power 1040 US$ 943.75 million Project, Andhra Pradesh + Rs.1324.993 crores (@ 1 US$=Rs.35.00)
2. Mangalore Thermal Power 1013.2 US$ 751.574 million Project, Karnataka. + Rs.1580.89 crores (@ 1 US$=Rs.31.50)
3. Bhadravati Thermal Power 1082 Rs.5187 crores. Project, Maharashtra.