Noida Power Company Ltd.

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The Noida Power Company Ltd. (NPCL) is a joint venture which has taken over power distribution and transmission activities from the Uttar Pradesh State Electricity Board (UPSEB) in Greater Noida, a 325 sq. km area, 25 km from New Delhi. RPG Enterprises has full management control. The Calcutta Electric Supply Corporation, (CESC), through its CESCON subsidiary, and the New Okhla Industrial Development Authority were the initial project sponsors. This partial divestiture is a pilot project for the restructuring of the UPSEB. The controversial transaction involved a dispute between NPCL and the UPSEB over asset repayment, temporarily valued at Rs.100 million ($3.05 million) and tariff charges. UPSEB claims that NPCL made only one of the five scheduled payments. In contrast, NCPL suggests that the asset valuation was too high and that tariffs should reflect this lower valuation. A government arbitration panel ruled in NPCL's favor, but UPSEB refused to accept this judgment. Nevertheless, other aspects of the transaction have gone more smoothly. NPCL has lowered transmission and distribution losses from 29% to 8% and increased the number of customers from 4,634 to 7,629 since taking over in August 1993. At present, NPCL draws 22-MW from the Uttar Pradesh State electricity grid, but has received clearance to develop a 30-MW plant, which would make NPCL a self-sufficient generator. In Aug. 2000, RPG received in-principle clearance to set up a 100-MW gas-fired project (fuel: low sulfur heavy stock). None None