TEC plans Rs 4,800 cr new investments

MUMBAI, OCT 27: Tata Electric Companies (TEC) has decided to set up a war chest of Rs 4,800 crore for merger and acquisitions in the energ...

MUMBAI, OCT 27: Tata Electric Companies (TEC) has decided to set up a war chest of Rs 4,800 crore for merger and acquisitions in the energy sector of the country. The company is in talks with promoters of various power projects for a buyout, and more details would be announced in three months, TEC Managing Director Adi Engineer said here today.

“We are targetting to become an energy company and also setting up a broadband infrastructure also,” Engineer said in a media briefing.

An investment of Rs 600 crore has been made — Rs 300 crore for laying a 400 km fibre optic cable network connecting Mumbai and Pune by 2001,” Engineer. TEC already had 1,200 km of exclusive right of way (RoW) in Maharashtra.

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Another Rs 300 crore would be invested for setting up a jetty at Mumbai Port to facilitate their Rs. 1,600 crore Liquified Natural Gas terminal to be set up at Trombay, he added.

“We have also submitted expression of interest in Powergrid Corporation’s tender in consortium with other Tata Group companies and are pursuing RoW opportunities with Railways, National/state highways or even state electricity boards,” Engineer said.

TEC is also in talks with Tata Steel, which has expertise in mining to jointly develop a coal based power station in the country. The company also envisaged an investment of Rs 600 crore in the Mangalore power project, which had been jettisoned by Cogentrix due to delays in getting approvals.

Over the on-going strife with BSES over payment of stand-by charges, Engineer said, TEC was waiting for further development on the issue and would resort to legal action otherwise.

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He said the company was planning to approach the Maharasthra Electricity Regulatory Commission (MERC) for an appeal as per the state government’s March 22, 2000 order.

On buying Powergen’s stake in various power projects as reported in the internatioanl media, Engineer said he will not comment on it now. However, insiders say both TEC and China Light, its joint venture partner in Mangalore project will make independent bids for the projects.

The other take over plans include Gujarat PowerGen Energy Corporation. In addition to this, Tata Power has bidded for picking up PowerGen’s stakes in Bina Power, Madhya Pradesh and Rosa Power, Uttar Pradesh.

Engineer declined to divulge further details in this regard on the ground of "confidentiality and legality." However, he added that these things would be clear within next three months.