Belgian utility Tractabel Power today denied a report in the Indian press, that it had sold its stake in its Indian joint venture. Tractabel has a 49 per cent holding in Jindal Tractabel Power Company (JTPC) which, the Economic Times said, had been sold for 2.35 billion rupees to the Jindal group and financial institutions.
A spokesperson for Tractabel told PEi that no binding agreement had been reached and that press reports were premature. “There are some management and strategy problems,” said the spokesperson, who confirmed that one of the options open to Tractabel was to sell its interests.
Tractabel’s partner in JTPC is Jindal Vijaynager Steel which holds the remaining 51 per cent. The company runs a 260 MW power plant in the southern state of Karnataka which supplies power to a 1.6 million tonne steel plant owned by a Jindal group company.
India’s power sector is about to undergo a package of reforms which, it is hoped will encourage new investment. A series of disputes have led to a number of foreign investors withdrawing from the Indian electricity market, most notably US energy giant Enron, which has given notice to quit the Dabhol power project. CMS energy has also threatened to pull out saying that the authorities have failed to live up to promises.
Earlier in the year, the Karnataka government cleared a proposal from JTPC to carry out a feasibility study on setting up a 500 MW project in the state. TCE Consulting Engineers is undertaking a feasibility study on the proposed project