AES spokesman Anil Patnaik told The Indian Express that AES Corp would make all arrangements for the payment of Rs 603 crore within 30 days of the state government fulfilling all the required conditions. He said that AES had already acquired the Foreign Investment Promotion Board's (FIPB) clearance for investment in OPGC.

The state government is expected to fulfil the conditions for disinvestment within about 90 days. Steps have been initiated to clear all the outstandings of OPGC. Gridco owes about Rs 206 crore to the corporation. However, the state government is providingRs 120 crore loan to Gridco to clear the dues of OPGC. The state government has also directed Gridco to open an escrow account in favour of OPGC, which is part of the conditions for disinvestment.

The Orissa government had invited global tenders from private parties to acquire a 49 per cent stake in OPGC, a wholly owned company of the state government with an equity capital of Rs 450 crore. The disinvestment has been carried out through a fresh issue of equity by the corporation (eight per cent of the enhanced equity capital) and sale of shares by the Orissa government (41 per cent of the enhanced equity capital).

AES forked out Rs 603 crore for the equity of a face value of Rs 225 crore to strike the deal. AES, in fact, outbidded six competitors, including two multinationals, in the race to pick up the stake in OPGC.

The shareholding agreement was signed on Tuesday by OPGC managing director S Gadanayak on behalf of the Orissa government and Anil Patnaik on behalf of AES.

OPGC sources said that AESnominees are likely to join the corporation's board by the end of this year. Even though AES will have 49 per cent stake in the company, it will have 50 per cent representation on the board. While AES will appoint the managing director and director of operations, the state government will nominate the chairman and director of finance. In case of a tie in voting on any issue, the chairman will cast the deciding vote. According to the shareholding agreement, either of the two partners willing to offload stakes will have to give the first right of refusal to the other partner.

OPGC sources said that from the disinvestment amount of Rs 603 crore, OPGC will get Rs 98 crore towards the fresh equity of eight per cent. The state is expected to plough back the Rs 378-crore profit it made from the disinvestment in its expansion project of adding two more units of 210mw each at site III and IV of Ib Valley with an investment of Rs 1700 crore.