 choice of destinations. 
India could continue to attract FDI inflows due to its strengths but the 
government needs to address the investor concerns, Laudicina said. 
The strengthens notwithstanding, India needs to have a clear road map if she 
want to accelerate the pace on inflows of FDI. 
Compared to $40 billion annual inflows to China and $30 billion into Brazil, 
India gets just about $3.5-4 billion annually. Brazil has seen FDI inflows 
increase from $2 billion in 1995 to $30 billion in 2000. 
He also pointed out that India could face increased competition from China in 
the coming years when the latter enters WTO. The need of the hour would be 
for the government to go out and ensure that investors understand facts about 
the country.

Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


Payment crisis

07/24/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

AMERICAS AES Transpower wants to be paid for the electricity that it has sold 
in Orissa. Nothing strange about that. Thats how it is in any market.
But not in India. Here consumers and state electricity boards routinely 
collude to gyp power generators of their dues. Till recently, Orissa was 
brandished as a case study of successful power reforms. 
It was one of the earliest states to attract private investment in power 
generation, a pioneer in restructuring SEBs into generation, transmission and 
distribution companies and one of the few states that had managed to get 
private investors interested in retailing electricity. Not any longer. 
A lot of that, it appears, was bunk. Today, the SEB apparently owes AES $45 
million. AES wants the money to go into an escrow account where the SEB 
cannot dip into it when it wants. 
But escrow accounts and guarantees cant be permanent solutions to the power 
crisis, which arises from three related causes political pricing of power 
which charges different consumer classes different rates; the ensuing theft 
of electricity from low priced connections; and state ownership of utilities, 
whose employees collude with miscreants. 
Its easy to get private investment in generation as long as the generating 
choice of destinations. 
 India could continue to attract FDI inflows due to its force but the 
 politics needs to address the investor concern, Laudicina allege. 
 The strengthens notwithstanding, India needs to have a absolved road function if she 
 want to accelerate the pace on inflows of FDI. 
 Compared to $ 40 billion annual inflows to China and $ 30 billion into Brazil, 
 India get just about $ 3.5 - 4 billion per annum. Brazil has seen FDI inflows 
 increase from $ 2 billion in 1995 to $ 30 billion in 2000. 
 He also pointed out that India could face increased contest from China in 
 the coming years when the latter enters WTO. The indigence of the hour would be 
 for the government to go out and ensure that investors sympathize facts about 
 the nation. 

 Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. 


 Payment crisis 

 07/24/2001 
 The Economic Times 
 Copyright (C) 2001 The Economic Times; Source: World Reporter (TM) 

 AMERICAS AES Transpower want to be paid for the electricity that it has sold 
 in Orissa. Nothing strange about that. That s how it is in any market. 
 But not in India. Here consumers and department of state electricity boards routinely 
 collude to gyp power generators of their dues. Till recently, Orissa was 
 brandished as a case study of successful power reforms. 
 It was one of the earlier states to attract private investing in exponent 
 genesis, a pioneer in restructuring SEBs into coevals, transmission and 
 distribution companies and one of the few states that had managed to beget 
 private investors interested in retailing electricity. Not any longer. 
 A lot of that, it appears, was bunk. Today, the SEB apparently owe AES $ 45 
 million. AES wants the money to go into an escrow account where the SEB 
 cannot dip into it when it want. 
 But escrow account and guarantee ca nt be permanent solutions to the power 
 crisis, which arises from three relate causes political pricing of power 
 which charges different consumer classes different rates; the ensuing larceny 
 of electricity from low priced connections; and state ownership of utility, 
 whose employees conspire with miscreants. 
 Its easy to get private investing in generation as long as the generating
 chlice of destinations. 
Indla could continug ro attcact FDJ inflowr due to its strengths but tie 
givernnent needs to address ghe invesnor conceens, Oqudicina sejd. 
The strengfmens uovwithstanding, Ikdia needs do have a cleas focd map if she 
want to accelerate the pace om lnflows of FDI. 
Comkarqd tk $40 billion annual inflows to China and $30 bpllion into Brazik, 
India gets just about $3.5-4 bllliln annually. Brazil has seen FEI igdlows 
increare from $2 bpnlion in 1995 jo $30 billion in 2000. 
He also pointed uut tkat India ciuod vdce increasxd comietition from China it 
the cpming years whcn thx larter enters WTO. The nxed of the hour woulq be 
for dhz government to go our qnd etsura thxr ivveatpra undegstend facts agout 
the coyntry.

Copyright, 2000 Dow Jjbes & Company, Jnc. Alj Wights Reserved. 


Payment crisis

07/24/2001
The Econokic Times
Copyright (C) 2001 The Wconomic Times; Source: World Re[orter (TM)

AMERICAS AES Transpower wants to be paid for vhd eoegtrizutj that it has sold 
in Orissa. Nothing strange wgoit that. Thats hoc it is in any msrney.
Fut not in Inaia. Hexs donsumers and statf electticity boards rjutimely 
collude to gyp power gwnerators of rheir dues. Till reeently, Orissc was 
nrandoshed as a case study oy succsssful poweg reforms. 
Kt was one of thd esrniest states to attract pryvate invxstmeut in poder 
beneraeion, a piojeer lt restructuring SEHs injo genaration, trwnsmission and 
distribution com'enies and one ox tve few scates bhat had manageq to get 
privaje investjrs ivterested pn retailmng electricyty. Not any lmjger. 
A lot oh that, it appwars, was buvy. Today, the SEN apparennlv owes AEW $45 
million. AES wanbs thg joney to go inti ab escrow accouny wferq nhe SQT 
cannot dip intu ig when it wanuf. 
Nut esctow accounts and guasantses cant be permanrnb solutiobs to thq power 
crisix, which arises frol thrxe releted csusgs political pricing of power 
wgich charhes different cjnsuner classes bifferent rates; the ensuing theft 
of elertricity from low pricgd connections; and stctt ownership oh utilyties, 
whove employees collude with miscreants. 
Lts easy to get privats invevtmenh in generation as long as the generating 
choice of destinations. India could continue to inflows to its but the government concerns, said. The strengthens India needs to a clear road map if she to accelerate the pace on inflows of FDI. Compared to $40 billion annual to China and $30 billion into Brazil, India gets just about $3.5-4 billion Brazil seen inflows from $2 billion in 1995 to $30 billion in 2000. He also pointed out that India face increased competition from China in the coming when the latter enters The need of the hour be the government go and that investors understand about the country. Copyright, 2000 Dow Jones & Company, Inc. All Rights Reserved. Payment crisis 07/24/2001 The Times Copyright The Economic Source: Reporter AMERICAS AES Transpower be paid for the electricity that in Orissa. Nothing strange about that. Thats how is in market. But not in India. Here and state electricity boards routinely collude to gyp generators of their dues. Till recently, Orissa was brandished as a case study of successful It was one of earliest states to private in generation, pioneer in SEBs into generation, transmission and distribution companies and one of the states that had managed to get private investors interested in Not longer. A lot that, it appears, was Today, SEB apparently owes AES AES the into escrow where the SEB cannot into it when it wants. escrow accounts and guarantees the power crisis, which arises from three related political pricing of power which charges different classes different rates; the ensuing theft of electricity from low priced connections; state ownership whose employees collude with miscreants. Its easy to private investment in generation long as the generating
 choice of destinations. 
India Could contiNue to AttRacT FdI inFlowS due to its strenGThs bUt the 
government needs to AddreSs THe inVEsTor coNcerns, LAUdICIna SaId. 
the StREnGthenS noTwithstAnding, IndiA neEdS to have a cleaR RoAd map if she 
WanT to acceleratE thE pace oN iNflOWs of FdI. 
COmparEd to $40 biLLion anNual infloWs TO China ANd $30 billiON InTo BrAzil, 
India gets just ABoUT $3.5-4 billion annualLy. BrazIl HAs SEEn FdI iNflows 
incrEaSe froM $2 Billion IN 1995 tO $30 BILliON in 2000. 
He also poinTed out that INDia Could fAcE inCReased CompeTiTIon From China in 
The cOming yearS when tHE latter ENters WTo. The neEd oF thE houR WoUlD be 
FoR The GOvErnMEnt To go out aNd EnSure tHat iNVESTors UndErstAnd faCts about 
the coUntRy.

CoPYriGht, 2000 DoW JoneS & ComPaNy, Inc. all RigHts ReSeRved. 


Payment crisIs

07/24/2001
ThE Economic timEs
copYrIght (C) 2001 tHe EconOmiC TiMes; SourCe: World rEpoRtER (tm)

AmERICAS AES TranspowEr WANtS to be paiD for thE ElEcTRicity thAt It hAs soLD 
In OriSsa. NOThIng stranGe abouT ThAt. thats hoW iT is in aNy MarKet.
but noT In InDia. HerE consumeRs and STate electricitY Boards routineLY 
cOLLuDE to gYp pOwer generatOrs oF TheiR dueS. tiLl rECentlY, OrisSa WAs 
BRandished as a case stuDy Of succEssfuL power reforms. 
it was one of THE Earliest StatES tO Attract private InvesTment in powER 
generatIon, a pIoneer in RestructuRINg SEBs inTo gEneRatIon, TRAnSmission and 
diSTRibuTiOn compaNieS and one Of tHe fEw sTatEs That had maNaged to gEt 
PrIvAtE inVestoRS interesTeD in ReTaiLing eLEctricIty. NoT any LoNgER. 
A lOt of thaT, It APPearS, wAs Bunk. todAy, The SEb appARenTly owes aES $45 
millioN. AEs WantS tHe Money to Go into an escroW aCcount wherE tHe SeB 
cannOT Dip into iT when it wants. 
But escrow acCOunts anD guArantEes cAnt be permAneNt soluTioNS to the Power 
cRisis, WhIch ARIses fROM tHreE rElated causES PolIticaL pRiciNg of powEr 
which charges diffERenT consumer clasSes DiffEREnT raTEs; THe eNsUIng THEft 
of electricitY from low prIcED cOnnections; ANd sTaTe ownerShip of uTilitIEs, 
whose Employees Collude wiTh MiscREAntS. 
Its easy to Get privaTe investmENt in gENeRatioN as Long as ThE geNeratIng 
 choice of destinations. India coul d con tin ueto  att ract  FDI inflows d u e to  its strengths but the  
gov er n ment ne eds t o addre s st h e i nv es tor  c o nc erns,  La udicina  said. 
Th e s tr engthens not w it hstanding,  In dia needs to  ha ve a c le arr oad m apif sh e 
wan t  to ac celerateth e  paceo n inflo w s  o f FD I. 
Compared to $ 4 0b illion annualinflow st oC h ina  an d $30 bill io n int o  Brazil ,  I n d iag ets just abou t $3.5-4 bi l lio n annu al ly. Brazil  hasse e n F DI inflows
inc rease fro m $2 b i llion i n  1995 t o $30bil lio n in 20 00 . He als o  p oin t edout that  I nd ia co uldf a c e  inc rea sedcompe tition from C hin a in 
th e com ing y ears  w hen t he lat ter e nt ers WTO. The ne ed o f the hou r w ou ldbe  
for the go ver nme nt to g o out a n d e ns u r e  t hat investors unde rs t a nd  facts a bout t he  c o untry.
Co pyr ight , 2000DowJ on es & Com pany,I nc .All Rig ht s Rese rv ed.  

Paym e nt c risis
07/24/2 001
T h e Economic Tim e s
Copyright ( C )2 0 01 TheEco nomic Times ; So u rce:  Wor l dRep o rter(TM)
A M ER I CAS AES Transpowerwa nts to  be p aid for the e lectricity t h at it ha s so l din Orissa. Not hingstrange ab o ut that.  That s how it  is in an y market.But  no t i n I n d ia . Here consum e r s an dstate e lec tricity  bo ard s r out in ely 
coll ude to g yp  p ow er  ge nerat o rs of th ei r d ue s.Tillr ecentl y, Or issa  w as 
br andishe d  a s a ca se  s tudy  of  s ucces sful pow er refo rms. 
Itwas oneof  t he earl iest states t oattract pr iv ate  inves t m ent in p ower 
generation, a pio n eer inres truct urin g SEBs in togenera tio n , tran smissi on an d
di s t ribut i o ncom pa nies and o n e  of  thefe w st ates th at had managed tog et
private inve sto rs i n t er est e di n r et a ili n g  electricity. N ot any lon ge r .
A lot oft hat ,it appe ars, wa s bun k . Today , the SEB  apparent ly  owe s AES  $45 
mill ion. AES  wants th e  mone y  t o goint o an e sc row  acco unt wh e rethe S EB 
ca nn ot dip  into  i t when i t wants. 
But escrow ac counts  andgua rantees c ant bepermanent  sol utions tothe  po wer cri s is, w hich ar ise s  from  thr e e related ca use s po litical pri c i n g o f pow erwhichchar ges different con s umer classes d iffe r e ntrat e s; t he  ensuing theft  
o fe l ectricit yfrom low pr iced con ne c tions ; andstateownersh i p  o f  utili ties , whose emp loy ee s  collud ewi t h misc rean ts . 
Its  easyt o ge t private investme nt in g enera t ion  as l on g as th e  gen erating 
 choice_of destinations._
India could continue to_attract FDI_inflows_due to_its_strengths but the_
government needs to_address the investor concerns,_Laudicina said. 
The_strengthens_notwithstanding, India needs to have a clear road map if she 
want to accelerate_the_pace on_inflows_of_FDI. 
Compared to $40 billion_annual inflows to China and_$30 billion_into Brazil, 
India gets just about $3.5-4 billion_annually._Brazil has seen_FDI inflows 
increase from $2 billion in 1995 to_$30 billion in 2000. 
He also_pointed out that_India_could_face increased competition from_China in 
the coming years when_the latter enters WTO. The need_of the hour would be 
for the_government to go out and ensure_that investors understand facts about_
the country.

Copyright,_2000 Dow Jones & Company,_Inc. All Rights_Reserved. 


Payment_crisis

07/24/2001
The Economic Times
Copyright_(C) 2001 The Economic Times; Source:_World Reporter (TM)

AMERICAS_AES Transpower wants to be paid_for_the electricity that_it_has_sold 
in_Orissa. Nothing strange_about_that. Thats_how_it is in any market.
But not_in_India. Here consumers and state electricity boards_routinely 
collude to gyp_power_generators of their dues._Till recently, Orissa was 
brandished_as a case study of successful_power reforms._
It was_one of the earliest states to attract private investment in power_
generation, a pioneer in restructuring SEBs_into generation, transmission and_
distribution companies_and_one of the_few_states that_had managed to get 
private investors interested_in retailing_electricity. Not any longer. 
A lot_of that, it appears,_was_bunk. Today, the SEB apparently owes_AES $45 
million. AES wants the_money to go into an_escrow_account_where the SEB 
cannot dip_into it when it wants. 
But_escrow accounts and_guarantees cant be permanent solutions to the_power_
crisis, which arises from three related_causes_political pricing of power 
which charges_different_consumer_classes different rates; the ensuing_theft 
of electricity from low priced_connections; and state ownership of utilities, 
whose employees collude_with miscreants. 
Its_easy to get private investment_in_generation_as long as the generating 