Adani Power may face land acquisition problems for Tiroda

Adani Power may face land acquisition problems for Tiroda
PTI
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First Published: Sun, Jul 19 2009. 12 09 PM IST
Updated: Sun, Jul 19 2009. 12 09 PM IST
New Delhi: Adani Power has said it may face certain land acquisition related hiccups for its 1,320-MW project at Tiroda in Gujarat, which may affect the project’s viability.
“We may not be able to acquire sufficient land area for our Tiroda project which may affect the viability of such project,” the company informed Securities and Exchange Board of India (Sebi) in its draft prospectus.
Adani Power’s initial public offer (IPO) is slated to open on 28 July.
The firm is in the process of identifying and acquiring land for developing the Tiroda power project.
“We cannot assure you (Sebi) that we will be able to identify adequate land or that land acquisition will be complete in a timely manner, on terms that are commercially acceptable to us,” the prospectus said.
It added that “if” it is unable to get sufficient land for its Tiroda project, the viability and efficiency of the project may be affected.
Adani Power has filed the Draft Red Herring Prospectus (DRHP) with the market regulator Sebi and would be listed on the stock markets by the end of this month.
Adani Power proposes to raise Rs2,200 crore through the IPO by offloading 33.7 crore equity shares. After listing, promoter Adani Enterprises will hold about 73.5% in the power firm.
The company is currently implementing two thermal power plants in Gujarat, one in Mundra and another in Tiroda, totalling 6,600 MW capacity.
The overall debt requirement for the two projects is Rs 22,000 crore, which has been arranged from the State Bank of India, ICICI Bank, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
While SBI is lending Rs16,000 crore, ICICI Bank is arranging Rs1,200 crore. PFC and REC are lending Rs2,600 crore and Rs1,500 crore, respectively.
Adani Power has signed power purchase agreements with Haryana, Maharashtra and Gujarat governments for selling power from the two projects.
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First Published: Sun, Jul 19 2009. 12 09 PM IST