AES corporation`s Chhattisgarh power plant in trouble
American power major aes Corporation's proposed us $1.2 billion power plant in Chhattisgarh has run into rough weather after the Orissa government refused to give it a no-objection certificate.
Under Foreign Investment Promotion Board (fipb) rules, foreign companies that have made investments in one Indian state require a no-objection certificate from that state before investing in another state. Orissa's energy minister, Surya Narayan Patro, cites two reasons for the refusal: one, aes (currently managing the Orissa Power Generation Company) did not honour the shareholders' agreement signed with the state government to set up two more thermal power units; two, the company owes Rs 800 crore to the state-owned power trading company, Gridco.aes had taken up the management of Central Electricity Supply of Orissa (Cesco) in 1999, with a 51 per cent stake. But it gave up on Cesco three years later, citing massive losses and the state government's non-cooperation in recovering electricity bills. "How can we give (aes)