Pvt investment in power sector estimated at Rs85,578cr in FY13

Agencies : New Delhi, Thu Dec 13 2012, 18:31 hrs

Private sector investment in the power sector is estimated at Rs 85,578 crore in this fiscal, Power Minister Jyotiraditya Scindia has said. As per official figures, Rs 56,476 crore worth of funds were pumped in by the private sector during 2009-10, while in 2010-11, Rs 86,646 crore were invested by private companies. The investment was Rs 1,06,975 crore in 2011-12. "Private sector investment in the power sector has not narrowed down in the last few years," Scindia said in a written reply to the Lok Sabha today. "The projected investments by the private sector during the current fiscal stand at Rs 85,578 crore," he said. Up to 100 per cent foreign direct investment (FDI) is permitted in the power sector under the automatic route for generation, transmission and distribution, he added. "The government has allowed issue of tax-free bonds for Rs 60,000 crore to finance infrastructure projects, which include Rs 10,000 crore for Indian Railway Finance Corporation, India Infrastructure Company and power sector," he added. External commercial borrowings to part finance rupee debt of existing power projects is also allowed. The government has reduced the rate of withholding tax on interest payments on ECBs from 20 per cent to 5 per cent for three years to provide low cost funds to infrastructure sectors including power.