Mumbai: Tata Power Ltd, India’s third biggest utility by value, has secured loans to build a $4.2 billion (Rs16,800 crore) plant in India.
Mumbai-based Tata Power has signed agreements for $1.8 billion in overseas debt and $1.4 billion in domestic loans. The company will invest Rs4,250 crore as equity in the project. Tata Power can now start building the 4,000MW plant at Mundra in Gujarat. Land has been acquired and construction will begin by October, Ashok Mitra, chief financial officer of Tata Power’s Indonesian coal unit, said on 2 April.
Tata Power plans to add more than 9,350MW of capacity to gain from rising electricity demand in India.