Govt to seek World Bank aid for Rs 7K crore DVC’s revamp
8 Feb 2013 5:09 AM IST
The government will seek multilateral agency World Bank's assistance for a complete makeover of the Rs 7,000-crore Damodar Valley Corporation (DVC).
'We will seek financial and technical support of the World Bank to restructure the organisation (DVC). We have already submitted the detailed project report to the government which will be forwarded to World Bank shortly,' a senior DVC official said.
'We want a handholding relationship with the World Bank which will involve co-financing our capex plans and introduction of best practices and technology in the corporation ... World Bank's support is expected to come before DVC corporatises itself,' he said.
DVC was promoted under DVC Act, 1948, as a statutory organisation jointly owned by West Bengal, Jharkhand and the Centre.
It is struggling for support to keep itself afloat and fuel growth plans. The World Bank assistance is expected to provide a fresh lifeline to DVC for its next phase of growth, the official said.
DVC, which generates 4800 MW in both thermal and hydel and another 2000 MW capacity is under pipeline, plans to foray into solar energy in a big way with World Bank support.
World Bank support is expected to be extended in the existing infrastructure like barrages and dams, flood control and canal irrigation of DVC, the official said.
NTPC SIGNS $250-MN LOAN PACT WITH SBI, JAPANESE BANK
State-run NTPC on Wednesday said it has signed a loan agreement worth $250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans.
'NTPC has signed a term-loan agreement for $250 million (approximately Rs 1,327 crore) with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders,' the company informed the stock exchanges today.
The loan agreement was signed on 29 January, last week.
'The proceeds of the loan shall be utilised towards capital expenditure for procurement of goods and services for the ongoing and new projects and renovation of stations of the company,' it said.
The loan carries a floating rate of interest linked to LIBOR and has a door to door maturity of seven years.
LIBOR is short for London interbank offered rate, the rate of interest that top-quality banks charge each other for loans.
It is often used by banks as a base for calculating the interest rate they charge on other loans. LIBOR is a floating rate, changing all the time. Meanwhile, the company's offer for sale opens tomorrow is expected to garner Rs 12,000 crore. The government plans to sell over 78.32 crore shares, or 9.5 per cent, stake in NTPC through offer for sale (OFS) route.
17 CONSULTANCY COS APPLY FOR CIL RESTRUCTURING ADVISOR’S ROLE
The government has received applications from 17 firms, including McKinsey, KPMG, Ernst & Young, Deloitte and Crisil, in response to the bids for the appointment of advisors to restructure Coal India Ltd (CIL).
‘The Coal Ministry has received 17 applications from companies like McKinsey, KPMG, Ernst & Young, Deloitte and Crisil,’ a government official said.
The Coal Ministry had last month invited bids for the appointment of advisors for restructuring of the country’s largest coal producer.
The official said the bids would be opened soon and the ministry is likely to shortlist the companies this month.
'We will seek financial and technical support of the World Bank to restructure the organisation (DVC). We have already submitted the detailed project report to the government which will be forwarded to World Bank shortly,' a senior DVC official said.
'We want a handholding relationship with the World Bank which will involve co-financing our capex plans and introduction of best practices and technology in the corporation ... World Bank's support is expected to come before DVC corporatises itself,' he said.
DVC was promoted under DVC Act, 1948, as a statutory organisation jointly owned by West Bengal, Jharkhand and the Centre.
It is struggling for support to keep itself afloat and fuel growth plans. The World Bank assistance is expected to provide a fresh lifeline to DVC for its next phase of growth, the official said.
DVC, which generates 4800 MW in both thermal and hydel and another 2000 MW capacity is under pipeline, plans to foray into solar energy in a big way with World Bank support.
World Bank support is expected to be extended in the existing infrastructure like barrages and dams, flood control and canal irrigation of DVC, the official said.
NTPC SIGNS $250-MN LOAN PACT WITH SBI, JAPANESE BANK
State-run NTPC on Wednesday said it has signed a loan agreement worth $250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans.
'NTPC has signed a term-loan agreement for $250 million (approximately Rs 1,327 crore) with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders,' the company informed the stock exchanges today.
The loan agreement was signed on 29 January, last week.
'The proceeds of the loan shall be utilised towards capital expenditure for procurement of goods and services for the ongoing and new projects and renovation of stations of the company,' it said.
The loan carries a floating rate of interest linked to LIBOR and has a door to door maturity of seven years.
LIBOR is short for London interbank offered rate, the rate of interest that top-quality banks charge each other for loans.
It is often used by banks as a base for calculating the interest rate they charge on other loans. LIBOR is a floating rate, changing all the time. Meanwhile, the company's offer for sale opens tomorrow is expected to garner Rs 12,000 crore. The government plans to sell over 78.32 crore shares, or 9.5 per cent, stake in NTPC through offer for sale (OFS) route.
17 CONSULTANCY COS APPLY FOR CIL RESTRUCTURING ADVISOR’S ROLE
The government has received applications from 17 firms, including McKinsey, KPMG, Ernst & Young, Deloitte and Crisil, in response to the bids for the appointment of advisors to restructure Coal India Ltd (CIL).
‘The Coal Ministry has received 17 applications from companies like McKinsey, KPMG, Ernst & Young, Deloitte and Crisil,’ a government official said.
The Coal Ministry had last month invited bids for the appointment of advisors for restructuring of the country’s largest coal producer.
The official said the bids would be opened soon and the ministry is likely to shortlist the companies this month.
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