Mumbai: India’s largest private sector power utility Tata Power Co. Ltd on Friday signed an agreement with Norway’s SN Power to jointly build hydropower plants in India and Nepal.
Starting with a 600MW project in Nepal, the two companies aim to have an installed capacity to produce 200MW by 2015 and 4,000MW by 2020, the utilities said.
Tata Power executive director S. Ramakrishnan said the firm plans to invest Rs15,000 crore till 2015 to generate hydroelectricity. “It will be a 70:30 investment-to-debt ratio with around Rs4,500 crore coming from equity, which will be shared by both the companies,” Ramakrishnan said.
SN Power has a licence to generate hydropower in Nepal, procured in 2006 through its majority owned company, Himal Power Ltd, and is generating 68MW of power, said Nadia Sood, its executive vice-president, South Asia. In India, the firm has a joint venture to generate 86MW of power in Himachal Pradesh.
The?deal?will?allow?Tata?Power to diversify away from coal-fired plants. It has an installed capacity to generate 2,900MW, mostly thermal-based.