DVC asks govt for Rs 5,000 crore capital infusion
Damodar Valley Corporation (DVC) has requested the government for fresh capital infusion to the tune of Rs 5,000 crore and said that if it does not receive the money, capacity expansion plans to the tune of 5,000 MW will not be realised. The company cannot approach the capital market to raise money to meet its equity requirements. The proposal is currently lying with the finance ministry.
The company received its last tranche of capital of about Rs 200 crore from the government in 1968-69. The fund was used to set up the company's generation units then. Its current equity base from surpluses and profits generated over the years has grown to about Rs 5,000 crore as of March 2011.
The government's capital in DVC will be required to finance the equity portion of the projects being undertaken. The proposed projects will require an equity capital of Rs 11,000 crore of which about Rs 6,000 crore has been met out of internal reserves. So DVC is asking the government for the balance Rs 5,000 crore.
Contact: Damodar Valley Corporation Tel: +91 033 2355 0647 Web: www.dvcindia.org