India May Delay $10 Billion of Electricity Projects, FT Says

By Archana Chaudhary

Aug. 13 (Bloomberg) -- Indian electricity companies may delay $10 billion of projects as fund-raising becomes difficult, the Financial Times reported, citing a report by London-based brokerage Arden Partners Ltd.

India may fall short of adding 90,000 megawatts in capacity by 2012 as projects that need $6 billion in debt and $4 billion in equity may be delayed after interest rates rose and shares on stock markets declined, the newspaper said.

Share sales have fallen after the Indian stock market declined and the Reserve Bank of India, the country's central bank, raised rates to contain inflation that reached a 13-year high, the report said.

To contact the reporter on this story: Archana Chaudhary in Mumbai at achaudhary2@bloomberg.net.