Powergen increases stake in Gujarat power plant

Vol 4, PW 19 (25 Oct 00) News in Brief

Powergen of the UK has scotched market speculation of its imminent exit from the Indian power sector by increasing its stake in a 655-MW power plant at Paguthan in Gujarat from 74.1% to 88%.

In a statement released 10th October, Powergen said it has acquired the13.89% stake held in the 'Gujarat Powergen Energy Corporation' - formally called 'Gujarat Torrent Energy Corporation' - from Siemens for Rs232cr ($51m). Powergen said the transaction would be funded from its "existing corporate facility".

Gujarat government-owned Gujarat Power Corporation holds the balance 12% in the power station, which began generating electricity in December 1988.