While the government is facing difficulties due to the global situation, finance minister Pranab Mukherjee said he would not use proceeds from disinvestment to meet capital expenditure needs beyond March 2012
New Delhi: Finance minister Pranab Mukherjee today said he would not seek proceeds from disinvestment to meet capital expenditure needs beyond March 2012, despite facing difficulties due to the global economic situation, reports PTI.
"I would not like to seek a further extension even though I am in a difficult situation," Mr Mukherjee said replying to supplementaries during Question Hour.
In November 2009, the government had granted one-time exemption to utilise the proceeds from disinvestment of Central Public Sector Enterprises (CPSEs) for meeting capital expenditure requirements of selected social sector programmes.
The proceeds from disinvestment are channelised to a National Investment Fund (NIF), set up in 2005. 75% of the interest generated from the fund would be used to finance selected social sector schemes, which promote education, health and employment.
The remaining 25% would be used to meet capital investment requirements of profitable and revivable CPSEs.
Mr Mukherjee said no deposits were made to NIF from 2009-10 to 2011-12. During this period nearly Rs48,000 crore have been realised through disinvestment of CPSEs.
He made it clear that the government would not let its equity below 51% in any of the CPSEs.
Mr Mukherjee said government has already approved disinvestment of 5% paid up equity capital of Oil and Natural Gas Corporation (ONGC) and Steel Authority of India (SAIL).
He said approval has been granted for disinvestment of 10% paid-up equity capital of Hindustan Copper (HCL) and National Building and Construction Corporation (NBCC).
The disinvestment of HCL and SAIL is in conjunction with the issue of fresh equity of 10% and 5% respectively.
Proposals for disinvestment of 5% paid up equity capital of Bharat Heavy Electricals (BHEL) and 10% of National Aluminium Company (Nalco) are at various stages before seeking government approval, Mr Mukherjee said.
The minister said the budget estimates for disinvestment proceeds are Rs40,000 crore for 2011-12.
Schneider Electric India has received orders worth Rs110 crore to provide turnkey power and automation solution for three photovoltaic solar power plants
Schneider Electric India said it has received orders worth Rs110 crore to provide turnkey power and automation solution for three photovoltaic solar power plants.
The three plants together have a capacity of 22.3 MWp. In general, MWp or megawatts-peak, refers to power output related to solar energy.
In a statement, Schneider Electric said the order comprises two 5 MWp and one 12.3 MWp photovoltaic (PV) solar power plants.
Schneider Electric would be responsible for the design, engineering, manufacturing, installation commissioning of the plants as well as deliver the turnkey electrical and control solution.
"These solutions include supply of all components except modules which will be supplied by the customers only in these projects... Schneider is also providing complete operation & maintenance to its customers with generation guarantee," the statement noted.
Schneider Electric India, which is part of French group Schneider, is a specialist in energy management.
Sahara India Power and Korea East-West Power have entered into a pact for developing power plants, with a total capacity of 6,000MW
East-West Power Co would set up power plants with a total capacity of 6,000MW in the country. Sahara India Power is part of the diversified Sahara group.
Both Sahara India Power and Korea East-West Power have entered into a pact for developing power plants, with a total capacity of 6,000MW. They would jointly participate in tariff-based bidding for ultra mega power projects (UMPPs) and also look at other opportunities in India.
The proposed 6,000-MW plants would include setting up of a 1,320 MW power Plant in Titlagarh, Orissa. This plant, based on supercritical technology, would be developed with an investment of about Rs8,000 crore, Sahara Power India said in a statement.
"We are delighted to partner with Korea East-West Power Co, in setting up 6,000 MW power projects in India. The association will bring in world class high end technological advancements in power generation...," Sahara India Power CEO Ashok Bhargava said.
Korea East-West Power Co President and CEO Lee Gil-Gu said the company is happy to associate with Sahara India Power and would also bring its international expertise in power generation.
The entity is one of the five power producers spun off from Korea Electric Power Corp (KEPCO). Indian power sector is expected to see a capacity addition of over 80,000 MW during the 12th plan period (2012-17), with significant contribution from private players.