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Power Energy  

KPCL plans divestment to fund new projects

 
04/30/2010 09:30:00 AM
KPTCL

The State-owned Karnataka Power Corporation Ltd has commenced a plan to disinvest 16-26% of its equity to part-fund new generation projects that may cost over Rs40,000 crore in the next three years, its Managing Director, Dr S M Jaamdar, said.

KPCL's new projects are aimed at creating 8200 MW of power through 2013. “This is an explosive expansion. We are seriously thinking of divesting equity [in the company]. We have not decided as to how much and when,” he said.

The method would be decided after SBI Capital Markets gave its report in the next three months.

KPCL traditionally followed a 20:80 equity-debt pattern.

By that measure and including the State Government's allocation of Rs 500 crore each over five years from fiscal 2009, it may need to raise Rs 4,000-5,000 crore at the maximum by disinvesting, he said.

 
 
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