Chapter 353: The Dabor Project

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"Shahabad hydropower plant investment?"

"Yes, Shahabad is a village in the upper reaches of the Krishna River in the interior of Maharashtra that is equipped for hydroelectric power generation. In order to address the power shortage in the state, coupled with the relative inability of hydropower, the Maharashtra Electricity Board wants to build a 600 megawatt power plant here. ”

"Why us?" said Guo Shouyun after a little thought.

"Maharashtra has always wanted to attract foreign investment, and the 'Nationalist Front Alliance', which currently holds power within the gang, also wants to win the next general election through economic development. Therefore, Anping Company, which belongs to the world's top 500 companies, has become their first choice! Moreover, we still have the Dabor project, and the two sides can reach an agreement on this. ”

"If this Shahabad is the next Dabor, won't we be pitted again?" Guo Shouyun said sarcastically.

"They gave assurances. Of course, as an Indian, I know that these guarantees are not very binding. But BOSS, the Indian market is so big, if we give up the opportunity because we are afraid of unknown difficulties, I am afraid it will be difficult to make a difference here. Shah Rukh said sincerely.

After being silent for a long time, Guo Shouyun nodded.

"What is the total investment in this project?"

"$450 million!"

"The project can be done, but there are two prerequisites: first, the land for the power plant must be acquired by the Maharashtra government, and we will buy the land from them. ”

The biggest difficulty of any Indian project is land acquisition. If they were to do it, they would undoubtedly have to clash with the local villagers. This kind of conflict can easily be amplified by those with good intentions and become evidence of the opponent's attack. The Dabor project has suffered losses, and Guo Shouyun does not want to do it again.

"Second, we must be solely responsible for the investment and construction of the project, and no one can interfere. ”

The sooner the project is completed, the sooner it can be profitable, and if the Indians are involved, the inefficiency will not only lead to a loss of money, but also drive people crazy.

"Okay, I've got it!"

"Can foreign capital intervene in the transmission and distribution process now?" Guo Shouyun asked instead.

"No, you can't. This part is still the responsibility of the Maharashtra State Electricity Commission. The price of electricity in India is very low, and the government provides a 30% subsidy for every kilowatt-hour of electricity. They won't give this kind of opportunity to foreign capital!"

Guo Shouyun knew in his heart, "Go back to Dabor." At the current price of Rs 3.5 in India, minus a 10 per cent rebate, how long will it take for the Dabor project to pay for itself?"

"The Dabor project has only completed the first phase, with a power generation capacity of 7 million megawatts and a total investment of US$1.1 billion. The cost of post-maintenance and retrofitting is $280 million. According to the profit margin of 7~12% of Indian power generation enterprises, it will take at least 30 years to pay for itself. ”

"Thirty years!" Guo Shouyun was still shocked by this number, even if he was prepared.

"Boss, this is just a rough estimate, in fact, we can also improve the return through capital operation. In addition, if India's transmission conditions and electricity environment improve, our rate of return will also increase!" said Shahuk.

He is an Indian and also hopes that foreign capital investment will boost the country's development. Therefore, I don't want to really scare Guo Shouyun away.

Of course, Guo Shouyun is not so easy to deterre. He just lamented that the profits of India's domestic power generation industry are really low. Not to mention the blatant rebate by the Electricity Commission, there is still 20% of the consumption in the transmission link, which is the highest in the world. In addition, the blatant theft of electricity nationwide!

So much so that he often wondered if it was a mistake for him to enter the Indian market, but when he thought about Dabor's investment of more than one billion yuan, if he gave up like this, the loss would be too great. So, again, the idea of persistence prevailed.

"Thirty years is thirty years, as long as the cost can be recovered. Guo Shouyun waved his hand, "Shahuk, you are the president of South Asia and the Middle East, do you have any other projects besides the Indian project?"

Anping Gas & Oil Company is preparing to build a new petrochemical plant with an annual processing capacity of 3 million tons with Saudi Aramco in Dammam. In addition, we are involved in the construction of two coal-fired power plants in Oman and Yemen. Including the two thermal power plants in Jaffna in Sri Lanka and Khulna in Bangladesh, as well as the 10 million cubic meter natural gas storage project rebuilt by the natural gas pipeline of the Dabor project, Anping has seven projects under construction in the entire Middle East and South Asia region, with a total investment of 2.7 billion US dollars. … These are the details of the project. ”

Shah Rukh took out a stack of materials from the safe and put it in front of Guo Shouyun.

After flipping through it briefly, he handed the information to Rebecca next to him.

"I'll take it back and see it. By the way, how far is it from Dabor?"

"100 miles from Mumbai!"

Guo Shouyun looked at the time, "Let's go, take me to see!"

The big boss's request, Shah Rukh naturally did not dare to refuse. After explaining the company's affairs, he took Guo Shouyun and Rebecca to drive to the destination.

100 miles, 160 kilometers, for a country with good road conditions, that is, about an hour's drive. But in India, where there are only two lanes and you have to avoid animals that could cross the road at any moment, you can't get up to speed. The group set off at 10 o'clock in the morning, and it was already noon when they arrived at the place.

"Boss, it's lunchtime, I'm going to prepare it for you...!"

After waving his hand to interrupt Shahuk's words, "No need, I brought some fast food in the car, just eat it when I'm hungry, let's go!"

Out of anxiety about Indian food, Rebecca specially prepared noodles, biscuits and mineral water when she went out. I didn't expect it to be used now.

"That's Dabor!"

Looking at the red rocky mountain in the distance, standing on the cliff, the huge metal creation that shimmered with metallic luster in the noon sun, Guo Shouyun couldn't help but ask.

"Yes, that's Dabor!" Shah Rukh nodded.

"Rebecca, how did you choose this place in the first place?"

Although facing the sea and backed by green hills, the scenery is good. But the area was so remote that Enron built a two-lane road from Mumbai to the plant, as well as a post office, dormitories and a restaurant for the plant.

"Mainly because even though it looks a little remote, it's big enough. And the power plant faces a cliff and has good port conditions. Natural gas carriers from the sea can directly carry out gas transmission, eliminating the need to build special terminals, saving costs. In addition, the small population of the remote area reduces the hassle caused by land acquisition and makes it easier for the power plant to start construction as soon as possible. ”

After nodding knowingly, Guo Shouyun raised his feet and walked towards the factory. With Shah Rukh, everything is naturally unimpeded. After taking a turn around the plant, he condescendingly looked at the plant under construction on his right, "Is that a natural gas storage area?"

"No, that's the second phase of the Dabor project. The gas reserve area is five kilometers from here. ”

"Have you found a natural gas user?"

"We have already found a gas supply contract with the Tata Group. In addition, we will try to develop the civilian market and aim to establish a natural gas retail network that can reach the major cities of Maharashtra and Gujarat within three to five years. ”

Guo Shouyun nodded, "The plan is very good. However, as far as I know, the price of natural gas in India is regulated by the government and is now $4.2/MMBtu. Compared with the international consumer market, this price is on the low side. In addition, India's gas pipeline is only 13,000 kilometers and is controlled by the National Gas Authority. Combined with India's spending power, are you sure it's profitable to sell gas here?"

"Boss, it seems that you still don't know India, there is nothing that money can't do here. ”

"Oh?"

"The weakness of democracy is the manipulation of politics by capital, and this is especially true in India, where the judicial system is not perfect. We can break through from here. Moreover, there are many local capital giants in India who are like us who are greedy for the oil and gas market, and we can unite them and distribute the benefits appropriately, and I believe that many people will be willing. ”

"It seems that you have a plan!" Guo Shouyun said thoughtfully.

"That's right. The market in India is too closed. It takes external forces to break this isolation for the country to truly develop. ”

"Shahuk, can't you see that you're still quite patriotic?"

"Boss, the interests of patriotism and the group do not conflict!"

"Of course, I don't interfere with your personal feelings, but the interests of the group must be guaranteed. Otherwise, I won't pamper you. ”

"Understand, rest assured, I will do my best to facilitate the Group's expansion in India, South Asia and the Middle East. ”

"Then I'll wait to see your results!"

After spending a day walking around the entire Dabor project, Guo Shouyun returned to the hotel where he was staying. For the next week, he went back and forth between the company and Dabor. Of course, in addition to the company's affairs, he also pays attention to Indian society.

After accumulating enough information, Rebecca sent an invitation to meet with the Tata Group.

The meeting took place not elsewhere, but at the Dabor steel plant, where the two sides cooperated.

"Mr. Guo, I have admired the name for a long time, welcome to India!"

"Mr. Tata is gracious!"

When the two sides shook hands with each other, their scrutinizing eyes did not stop.

Compared to Guo Shouyun's youth, Ratan Tata, who is already 67 years old, looks old. Even so, no one would take the 50-year-old Tata under control, who has re-emerged from the downhill company in a decade or so and become the head of India's No. 1 consortium through aggressive international expansion.

The same psychology applies to Ratan Tata at this moment. Although the person standing in front of him is very young, the brilliant performance of the other party is not inferior to him, or even surpasses.