Malaysia eyes India's power sector
By A Business Correspondent
After making its presence felt in the transport sector, Malaysia is now eyeing India's power sector. Initially, Malaysia will concentrate on the north Indian states. According to Dr. K.S. Nijhar, Member of Parliament, Malaysia, "Malaysia plans to enter into a power purchase agreement (PPA) with one of the northern states to set up a 300-mw hydro power plant." He was participating in a panel discussion at the third Pravasi Bharatiya Divas conference in Mumbai recently.
After holding a series of meetings with the CMs of northern states on the proposed power project, Dr Nijhar has shortlisted HP and Uttaranchal for the project. The PPA would be finalised based on the terms and conditions offered by these states. The number of power projects to be set up would depend on the success of the first power project.
Malaysia would be investing $600 million in power sector in India. Thirty per cent of the cost would be contributed in the form of equity capital and the balance will be raised from the banks and financial institutions in the Malaysia.
(10 January, 2005)