BIG OIL LEAPS THE POWER CHARGE
Article Abstract:
In an effort to become total energy companies, Indian Oil Corp (IOC), Hindustan Petroleum (HP), Cochin Refineries, Oil & Natural Gas Corp (ONGC) and the Gas Authority of India Ltd (GAIL) are going in for mega power projects. IOC plans to set up five power plants at Haldia, Panipat, Bhatinda, Kosi Kalan and Savli with a total capacity of 1,730 megawatts (mw). GAIL plans to set up two units, one near Delhi and the other at Guna in Madhya Pradesh with a combined capacity of around 900 mw. While HP plans to set up a 500 mw plant at Vizag, ONGC is to set up two plants at Hazira and Panipat each with capacity of around 300 mw. Cochin Refineries plans to set up a 500 mw power plant at Kochi. The oil companies are venturing into power sector for various reasons. As per the schedule of dismantling administered price mechanism, furnace oil will be decontrolled by March 1999 which will lead to crash in furnace oil prices. The companies intend to use this low value fuel to produce power. It will also help solve problems involved in marketing high sulphur furnace oil. The oil majors are overflowing with cash and this is another factor prompting them to go in for power projects. While IOC's power project plan requires an investment of Rs7,600 crore , ONGC and GAIL's investment would be around Rs1,200 crore each. HP and Cochin Refineries will have to invest Rs2,200 crore each. (tsm)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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KPCL: SUPER PSU
Article Abstract:
The Karnataka Power Corp Ltd (KPCL), a public sector unit (PSU) owned by the Government of Karnataka, has set up the fifth 210 mw unit of the Raichur Thermal Power Station in a record time of 28 months. It is likely to complete the sixth 210 mw unit of the Raichur Thermal Power Station by April 1999 in 31 months. By reducing the time taken to complete the projects, the Karnataka Power Corp Ltd has managed to save Rs200 crore from the total project cost of Rs1,545 crore. The Karnataka Power Corp Ltd has saved much on interest as it was Rs65 lakh per day. The cost of commissioning each mw of power works out to Rs3.22 crore for the Karnataka Power Corp Ltd, compared to the national average of Rs4.5-5 crore. The Karnataka Power Corp Ltd is now targeting completion of the seventh 210 mw unit of the Raichur Thermal Power Station in 24 months at a cost of Rs520 crore. Work on the project is likely to start by mid-2000 AD. (tsm) (kvr)
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1999
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POWERING INTO A NEW PHASE
Article Abstract:
AES Transpower, a division of AES Corp of the US, has acquired a 49 percent stake in Orissa Power Generation Corporation (OPGC) for Rs603 crore. This is the first power project that the Orissa government has started to privatise. OPGC owns two units of 210 mw in the Ib valley. The next project that the Orissa government wants to privatise is the Grid Corp of Orissa. The state has projected that it will convert its power distribution set-up into privately-run organisations by May 1999. (khr) >EN
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Has been 49% acquired by AES Transpower, a division of AES Corp of the US, for Rs603 crore
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1998
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