BRIEFING - ASIA ENERGY - JAN 1, 2002.

An executive briefing on energy for Jan 1, 2002, prepared by Asia Pulse (http://www.asiapulse.com), the real-time, Asia-based wire with exclusive news, commercial intelligence and business opportunities.

INVESTOR WITHDRAWAL FORCES INDIAN GOVT HAND IN POWER SECTOR

NEW DELHI - Shaken by withdrawal of global investors one by one in the absence of commercialisation of State Electricity Boards (SEBs), the federal government has been forced to commit to investing in the power sector from 2001 onwards, virtually reversing decade long policy of promoting private participation.

"We have discounted any private investment and have targeted 50,000 mw capacity addition during the Tenth Plan period," says Federal Power Minister Suresh Prabhu on the future of power sector in the country, adding commercial viability of SEBs and implementation of reforms alone could bring back private investors, both domestic and foreign.

INDIA'S NTPC FACES BLEAK PROSPECTS ON DIP IN FUNDING FROM SEBS

NEW DELHI - The state-owned National Thermal Power Corporation (NTPC) today faces bleak prospects in generation of electricity with a projected dip of Rs 50 billion (US$1.03 billion) in realisesd funds during 2001-02 from State Electricity Boards which has caused the power giant difficulties in footing the bill for fuel.

Notwithstanding the power sector reforms and pressures from the corporation on state electricity boards for clearing the outstanding, NTPC is understood to have informed the federal government about the grave financial situation.