Power cos see costs easing but viability still key
Tuesday, 06 January , 2009, 15:16

Power cos see costs easing but viability still key

Mumbai: The fiscal and monetary measures announced by India last week will enable power companies easier access to funds at lower rates, helping bidders of viable mega-power projects, industry officials said.

The Reserve Bank of India late on Friday announced a cut in key interest rates and cash reserve requirements, while the government raised the limit of foreign investment in corporate bonds and enabled easier funding to infrastructure.

"You can be rest assured that finally it will translate into increased amount of liquidity at lower rates," said S.C. Bhargava, executive vice president, Larsen and Toubro and former president of industry body Indian Electrical and Electronics Manufacturers' Association (IEEMA).