India gets first FDI in power sector after 54 months: Shinde

Hyderabad, May 26 : India gets its first foreign direct investment (FDI) in the power sector after 54 months when a Singapore-based company committed to invest in 1,320 megawatt ultra-critical thermal power plant coming up in Andhra Pradesh.Up to 100 per cent FDI is allowed in the power sector in the country.Singapore's Sembcorp will be investing Rs 1,100 crore to pick up 49 per cent stake in the Rs 6,869 crore phase-I of the thermal power plant of the Gayatri Group, the city-based infrastructure company, to come up at Krishnapatnam in Prakasam district.Speaking at the signing of a joint venture agreement here yesterday, Union Power Minister Shushil Kumar Shinde said: ''During my four and a half years tenure, the investment by Sembcorp Group is the first FDI in power sector,'' Mr Shinde said. The project is expected to come up in 40 months. The Minister, who conceded that India could meet only half of the 42,000 mw target in the 10th Plan, said the country is looking at the 78,000 mw target in the 11th Plan which ends in March 2012.Power equipment major BHEL has been tasked with doubling its capacity to manufacture 10,000 mw of power-generating equipment, Mr Shinde said, adding that the State-owned firm would further extend its capacity to 15,000 mw to achieve the 11th Plan target.He said four ultra mega power projects with Rs 16,000 crore investment are also planned in Andhra Pradesh. India needs bigger capacity utilisation even as the UPA Government has assured to electrify every village by 2012. With gas find in Krishna Godavari basin, more gas-based power plant are in the offing, the Minister added.Chief Minister K Rosaiah said his State welcomed investment not only in power but in all sectors. The first private sector power plant in the country had come up in Andhra Pradesh even before liberalisation.Andhra Pradesh had the both coal and natural gas and was the largest hydel generating State in India, the Chief Minister said, indicating that the State could be a favourable destination for investors.
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