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China keen to invest in Indian power sector

India's rapid industrial development offers enormous opportunities for the power sector, a senior Chinese official has said.

Xu Xu, deputy director general at the ministry of foreign trade and economic cooperation, said India is also an attractive investment destination for Chinese power companies.

''We hope the power sector in India will be able to cope up with the demands of rapid industrial development,'' he said while addressing a seminar in New Delhi organised by the Independent Power Producers Association of India. Xu is in the capital alongwith a 15-member delegation to explore investment opportunities in the Indian power sector.

Power secretary R V Shahi said the Indian government is trying to make all utility services financially viable in the next five years. He said there is enough demand for power with affordable tariff structure across the country.

The challenge is how to minimise capital costs so that tariffs can be kept at minimal level.

Shahi said there is a national average shortage of eight per cent, which should encourage investors to set up hydro-electric and coal-based projects.

The country allows 100 per cent foreign direct investment in the power sector. Chinese investors can explore the possibilities in generation and distribution besides supplying equipment for power projects, Shahi said.

It is estimated that for building over 100,000 megawatt of additional power capacity and associated transmission and distribution infrastructure, nearly Rs 8000 billion of capital expenditure will be required over the next decade or so.

In 2001-02 the electricity supply was about 516 billion units.

Of this, thermal power generation was 86 per cent while hydel contribution was 14 per cent.

UNI

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