Mumbai: Country’s top private power producer Tata Power today said it has tied up with State Bank of India for securing Rs3,115 crore debt to develop a 1,050 MW coal- based power project in Jharkhand.
The 1,050-MW Maithon Right Bank Thermal Power Project is being set up by Tata Power in joint venture with Damodar Valley Corporation. Tata Power owns a 74% stake in Maithon Power Ltd, while the rest 26% is held by DVC.
The project, estimated to cost Rs4,450 crore, is being funded in a debt-equity ratio of 70:30.
“The debt for the project is Rs3,115 crore and is being financed by various banks led by State Bank of India (SBI),” Tata Power said in a filing to the Bombay Stock Exchange.
The company said the consortium of 17 banks, led by SBI include Allahabad Bank, Bank of Baroda, Canara Bank, J&K Bank, Oriental Bank of Commerce and Punjab & Sind Bank. SBI Capital Markets Ltd is the sole financial advisor and arranger of debt for the project.
Tata Power Managing Director Prasad R Menon said: “The closure of financing for Maithon project is an important milestone. The unique terms of debt financing provides us more flexibility in the execution of the project as well as help in controlling costs.”
Shares of Tata Power were trading at Rs1,438.65, up 2.7% on BSE in late afternoon trade.
Maithon Power has obtained all major clearances and permits for the 2x225 MW project. The site preparatory works are in progress and orders for main equipments have been placed, it said.
The first unit is is expected to be commissioned by October 2010, and the second one by March 2011. The long-term coal linkage has been allotted from the nearby Bharat Coking Coal Ltd mines.