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NTPC to provide consultancy to DPC

BS Corporate Bureau

The National Thermal Power Corporation is slated to provide consultancy services to the troubled Dabhol Power Company.

Union Minister of State for Power Jayawantiben Mehta told newsmen on Sunday: "The Industrial Development Bank of India Chairman and Managing Director P P Vora made a request to me in this regard and I have agreed. We will charge a fee for this."

Mehta refused to elaborate further. The development assumes significance as IDBI is scouting for a technical partner to maintain the DPC.

A court appointed receiver has taken charge of the plant for care and preservation after the domestic financial institutions moved the Bombay high court. The Indian and foreign lenders too may enforce the security and proceed with an asset sale later.

Mehta was speaking to newsmen on the sidelines of a conference on "power sector reforms" organised by the Indian Merchants' Chamber.

Earlier, speaking at the seminar, Mehta said India needed to add another 100,000 megawatt of power by year 2012 to meet demand.

She said both the public and private sectors will have to invest in the sector.

Mehta also said 21 states had signed a memorandum of understanding with the Centre to implement a programme for reform.

She pegged the combined transmission and distribution losses at a staggering Rs 260 billion and bemoaned that some states often diverted money given by the Centre for reform to other avenues. She, however, declined to reveal the names of the states.

Earlier, the energy secretary of Maharashtra, Ravi B Budhiraja said the state government would come out with a white paper on the shape of reforms in the Maharashtra State Electricity Board by June 30, 2002.

Last year, a committee headed by former Union home secretary Madhav Godbole had recommended unbundling and corporatisation of MSEB first and its subsequent privatisation.

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