In a bid to ensure better functioning of generating unit, Chief Minister Sheila Dikshit on Tuesday approved a proposal for merger of Indraprastha Power Generation Company limited (IPGCl) and Pragati Power Corporation limited (PPCl). The decision was taken after examining the report of SBI Capital Markets limited regarding merger of PPCl into IPGCl.
The new merged company would be known as IPGCl. All employees of PPCl would become the employees of IPGCl and shall be governed by the rules and policies of IPGCl. The new company will also take up renewable energy activities and would also facilitate setting up of 220 KV GIS sub-station at Rajghat after de-commissioning of Rajghat Power House. The Cabinet note possessed by The Pioneer, states that the new company will come into operation from April 1, 2013.
Rajghat Thermal power house will be shut down after the operation of module two of Pragati III and setting up of 220 KV GIS sub station at Rajgaht for evacuation of power by DTl. "After decommission of Rajghat power station, setting up a gas based power plant may be explored by IPGCl subject to availability of gas in order to cater the increasing load of Delhi," the Cabinet note said.
The SBI Capital Markets in its report has stated that the combined entity would have stronger balance sheet with four gas based power projects in Delhi and interests in Joint Venture. For further fund rising, it may look at listing at appropriate time. "The accumulate losses of the IPGCl may provide tax benefits to the merged entity. The various accounting, compliances and transaction costs would go down. The top management is common for both the companies. With higher capital base leading to better gearing, the merged entity would have lesser financial risk and cash flow of one project can be utilised towards another project without any restriction and tax leakage," it said. After the Cabinet meeting, Dikshit expressed confidence that the merger of the two companies would also bring reduction in administrative, statutory and legal compliances.
Delhi Cabinet has also hiked monthly remuneration of part-time vocational teachers from Rs 13,160 to Rs 23, 265 per month for those who are fulfilling the eligibility criteria. At present, 761 vocational part-time teachers have been deployed for this purpose. They have been working on part-time basis for the last so many years and are being offered consolidated monthly remuneration. The vocational education program introduced in the year 1977-78 under 10+2 pattern in the education system, is being implemented in 202 government and seven government-aided senior secondary schools, imparting vocational training to more than 16,000 students under 17 different trades.
In a bid to attract more people from SC/STs/Minorities and OBCs community, the Cabinet has given its nod to the liberalised conditions under Dilli Swarojgar Yojana permitting only one surety. The decision would go a long way in making the scheme more implementable and attractive for the targeted beneficiaries.