FG, Indian group to collaborate on investment in power sector

The Bureau of Public Enterprises (BPE) says it will collaborate with Jindal Steel and Power Group in its areas of interest to invest in Nigeria.

Alex Okoh, director-general, BPE, said this on Friday, in a statement issued by Chidi Ibeh, the bureau’s head of public communication, in Abuja.

Jindal Steel and Power has a dominant presence in steel, power, mining and infrastructure in India.

Okoh, while receiving a delegation from Jindal, led by Vidya Sharma, its vice chairman, said there was a lot of potential in the country in areas of interest for the group.

According to him, one of such opportunity is the planned concession of the Zungeru Power Plant which could generate about 700 megawatts when operational.

He added that the federal government had already procured the services of a transaction adviser for its eventual concession.

Okoh said the planned concession of the Zungeru Dam would be modelled after that of Kainji and Jebba Dams concession and the successful concessionaire would handle it for 30 years.

Speaking further on the areas of interest for the group, the director-general said though the three steel rolling companies in the country — Jos, Katsina, and Osogbo — had been privatised, they were not living up to expectations.

He said any effort to revive the sector would be supported.

“Another area of investment is power, there are openings in the country. The federal government is on the verge of privatising five of its ten National Integrated Power Plants (NIPPs),” Okoh added.

“These plants have the combined capacity to generate between 2,300 to 2,500 megawatts.”

According to him, despite the unbundling of the power sector by the federal government in 2013, resulting in 11 power distribution companies and six generation companies, the Transmission Company of Nigeria was still being retained by the federal government.

Okoh, however, said plans were underway to unbundle it for more efficiency; adding that a joint committee headed by Yunana Malo, director, industries and services, BPE, has been set up to work out the modalities for the exercise.

On his part, Sharma said the courtesy visit was to allow the group to have first-hand information on areas of investment in Nigeria.

“Nigeria is the largest economy in Africa my group intends to cash in on the vast potential and invest in mines, hydropower and other areas of interest,” he said.

The group was also accompanied by Ahmed Sule, Nigeria’s high commissioner accredited to Bangladesh, Nepal and Sri Lanka.