It seems there will be no dearth of financiers for the ultra mega power projects. International Finance Corporation, the World Bank's private investment arm, is among those keen on putting their money in the 4,000-MW projects.
According to sources close to the development, IFC has approached the government for funding the projects, each of which may need Rs 12,000-13,000 crore (Rs 120-130 billion).
The Asian Development Bank has also thrown its hat into the ring for the purpose. Each project is estimated to cost Rs 20,000 crore (Rs 200 billion).
According to the terms and conditions of the bids, the developers will have to bring in equity of 51 per cent in the first two years, and will be allowed to dilute it up to 26 per cent over the first ten years.
However, the Planning Commission has objected to the financial structuring of the projects. In a recent letter to the power ministry, it questioned the capacity of the special purpose vehicles, or shell companies floated by the government to pilot the projects and get the required clearances and approvals, to "deliver all that has been promised."
The commission, not a part of planning for the projects, said: "The process is being driven by a concept that