Foreign power majors to tie-up prior Indian foray
By agencies   |   Wednesday, 16 August 2006, 19:30 IST
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MUMBAI: Many global power majors are understood to scout suitable partners before entering the Indian market. While companies like South Korean Power major Doosan (with Tata Power), the Hong Kong based China Light Power (GMR group), and the Canadian SNC Lavlin have already gone ahead and tied up with Indian players, others are on the lookout for fitting associates. The foreign players had initially uttered an interest in the ultra mega projects, but had reservations regarding monetary viability, which could possibly hold up their participation in these projects. Most of the players are expected to either withdraw or bid only in collaboration with an Indian associate to reduce their own exposure to risk, sources revealed. Other companies are likely to consider a power purchase agreement (PPA) that includes a clause for modifying tariffs at shorter intervals. Additionally, a higher risk perception could rework into a higher tariff, making foreign bids costlier than that of Indian companies, sources added. Companies like AES and Khanjee Holdings from the U.S; Sumitomo, Itochu and Mitsui from Japan; Korea Electric Power Co (South Korea), China line power (China); Troncoh Alco Combine from Malaysia; Duncan Machneil (UK) and Electricte De France (France) are contemplating the proposition.