In my blog dated February 2011, I mentioned that I did not understand why funding infrastructure was such a problem in India ? Good projects with good sponsors should be able to do that.
Today I read an article in the Asian Wall Street Journal that CLP India Ltd a wholly owned subsidiary of a CLP Holdings Ltd, Hong Kong, was thinking of listing its India operations. It started its operations in India in 2002 by acquiring a majority stake in a 650 megawatt gas powered plant project in Gujarat, which it now owns one hundred percent. It also owns a 1,320 Megawatt coal based plant at Jhajjar in Haryana which should be fully operational soon. It runs wind farms totaling 500 MW and expects to raise the capacity by 44% by mid-2013 to 720 Megawatt. It is also looking at opportunities in solar power and other projects.
According to the article, the Chief Executive Rajiv Mishra, stated that "We operate at the lower end of the risk spectrum,” . “We are very conservative that way ". Historically it has raised debt mostly from multi-national lending agencies such as ADB, overseas commercial banks and the rest of the funds from its own cash flows and from the parent. Selling shares and forming joint ventures for power projects will be a shift in the company’s strategy, according to Mr.Mishra
Now perhaps someone can explain to me why is it that a foreign company with no previous experience in India can very successfully complete projects totaling 2,470 Megawatts in different sectors in the space of ten years, without making any excuses about delay due to government approvals, or complaining about feedstock prices going up, asking for subsidized coal or the hundred of excuses which the Indian project sponsors continuously make for delaying their projects ? Do they have better political connections then any of the business houses. I would be surprised if Micheal Kadoorie , whose family controls the company, has ever met the Prime Minster, the Finance Minister, or the Vice Chairman of The Planning Commission - perhaps I am wrong ? To the best of my knowledge , which is of course limited, the only connection that Micheal Kadoorie had with India was through his grandfather - originally from Iraq who first came to Bombay and then moved on to Shanghai where he made his fortune.
Having done deals for CLP during my banking days, I will be looking forward to buying their shares when they list locally. It will be the only power infrastructure stock in my portfolio.
Today I read an article in the Asian Wall Street Journal that CLP India Ltd a wholly owned subsidiary of a CLP Holdings Ltd, Hong Kong, was thinking of listing its India operations. It started its operations in India in 2002 by acquiring a majority stake in a 650 megawatt gas powered plant project in Gujarat, which it now owns one hundred percent. It also owns a 1,320 Megawatt coal based plant at Jhajjar in Haryana which should be fully operational soon. It runs wind farms totaling 500 MW and expects to raise the capacity by 44% by mid-2013 to 720 Megawatt. It is also looking at opportunities in solar power and other projects.
According to the article, the Chief Executive Rajiv Mishra, stated that "We operate at the lower end of the risk spectrum,” . “We are very conservative that way ". Historically it has raised debt mostly from multi-national lending agencies such as ADB, overseas commercial banks and the rest of the funds from its own cash flows and from the parent. Selling shares and forming joint ventures for power projects will be a shift in the company’s strategy, according to Mr.Mishra
Now perhaps someone can explain to me why is it that a foreign company with no previous experience in India can very successfully complete projects totaling 2,470 Megawatts in different sectors in the space of ten years, without making any excuses about delay due to government approvals, or complaining about feedstock prices going up, asking for subsidized coal or the hundred of excuses which the Indian project sponsors continuously make for delaying their projects ? Do they have better political connections then any of the business houses. I would be surprised if Micheal Kadoorie , whose family controls the company, has ever met the Prime Minster, the Finance Minister, or the Vice Chairman of The Planning Commission - perhaps I am wrong ? To the best of my knowledge , which is of course limited, the only connection that Micheal Kadoorie had with India was through his grandfather - originally from Iraq who first came to Bombay and then moved on to Shanghai where he made his fortune.
Having done deals for CLP during my banking days, I will be looking forward to buying their shares when they list locally. It will be the only power infrastructure stock in my portfolio.
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