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Thuse, D G (1988) Road transport investment model using dynamic programming, Unpublished PhD Thesis, , Indian Institute of Technology, Bombay (India).

Tupe, S N (2009) Issues in financing of power projects during the period of economic reforms in India, Unpublished PhD Thesis, , Indian Institute of Technology, Bombay (India).

• Type: Thesis
• Keywords: private sector; banking; capital structure; financing; funding; inflation; investment; participation; power generation; public sector; India; case study
• ISBN/ISSN:
• URL: https://www.proquest.com/docview/2572325316
• Abstract:
  Power sector reforms were introduced in India in 1992 along with general economic reforms to take up the challenge of speedy growth of the industrial sector and overall development of the economy. Power sector reforms of 1992 cleared the way of private sector participation in power generation and distribution business. In response to this, many domestic and international investors have shown the interest in setting up power projects. Leading business houses from India and renowned international power generation firms submitted project reports to Ministry of Power for approval. Total 59 Independent Power Projects (IPPs) approved for the 29614 MW capacities, out of that 33 projects have been fully commissioned with a mere capacity of 6769.21 MW. Total 19 projects are ready for financial closure however they are tied up with funds. Besides IPPs, some existing and newly incorporated private generation and supply firms want to set up power generation plants but they are not finding enough and reliable sources of funding. With this backdrop, present study explores the issues in financing of power projects during the period of economic reforms in India. For that, this study reviews the development process of Indian power sector since 1951 and explores the challenges faced by it. Before analyzing the issues in financing of power projects (firms) and the determinants of their capital structure, Present study reviews a strategy used for the development of power sector in India since 1951 and show the gaps. It analyses the performance of power sector for pre reforms, post reforms and whole period. Economic reforms and power sector reforms have tried to clear off the impediments faced by the power sector in general and power projects particular. The results in this regard reveal that physical performance of Indian power sector has suffered during the post reforms period comparing it with pre reforms period and whole period. However, from the financial performance point of view, this sector has shown marginal progress during the reforms period. The trends and patterns of financing of power generation and supply firms are analyzed for the period 1993-2004.The findings appeared on the trends and patterns of financing shows that these (PGSF) firms relied upon internal sources of finance over the external sources. The second source of finance for them is remained equity capital. An interesting finding about their financing pattern is that these firms were poorly financed by banks and financial institutions. We also compared the financing pattern of private sector firms with public sector power generation firms. We find that in the case of financing from internal and external sources, public sector firms’ financing pattern is different from private sector firms however financing rose from the banks and financial institutions, both categories of the firms have similar pattern. The results of static panel data model on the determinants of the capital structure of the power generation and supply firms suggest that Size, Tangibility, Profitability and Costs are the major determinants for these firms in India. The positive relationships of the variables size and assets tangibility with leverage are consistent with the prediction of Static Trade-off Theory, Information Asymmetry Theory and Agency Cost Theory. Other two prominent variables; Profitability and Cost exhibit negative association with leverage that predicts the presence of Pecking Order Hypothesis. The results drawn from the static panel data model using balanced panel and unbalanced panel are more or less consistent with some minor differences. The impact of macro economic factors on the leverage of these firms are also traced in the unbalanced panel, results the eof show the negative relationship between banking development and leverage, which can be concluded as these firms have faced constraints from the Indian banks in raising the funds. The positive relationship is appeared between inflation and leverage. This establishes that financial stability can promote the debt raising capacity of the firms. The role of finance facilitators in promoting investment in power projects and firms are examined using the semi log model, Kruskal Wallis rank test and also by conducting the case-studies. The results exhibit that the performance of facilitators are not same. The rate of loan sanction to disbursement of the facilitators has declined over the period.