Financing of Power Projects: Rs 11,183.75 billion required during XII plan

The Ministry of Power`s (MoP) tentative estimates, as given in its strategic plan, reveal that about Rs 11,183.75 billion worth of funds would be required to sustain the power sector during the XIIth plan period. Nearly half of these funds, Rs 5,113.75 billion, would be required for generation of power, while another Rs 2,095 billion and Rs 3,975 billion would be required for transmission and distribution. 

• Assuming a debt-equity ratio of 70:30, Rs 7,303.63 billion out of the humungous amount would be financed through debt instruments, while Rs 3130.13 billion would be sourced via equity infusion. Another Rs 750 billion would be provided through gross budgetary support (GBS) by the centre. 
• The sector-wise requirement of funds are pegged as Rs 3044.49 billion, Rs 4728.84 billion and Rs 3410.43 billion for the central, state and private sectors, in that order.