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KSK Energy ties up $3.6 bn for power project

KSK Energy ties up $3.6 bn for power project
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First Published: Mon, Sep 20 2010. 11 30 AM IST
Updated: Mon, Sep 20 2010. 11 30 AM IST
Mumbai: The Indian unit of London-based KSK Power Ventur Plc said on Monday it had tied up $3.6 billion in loans and equity for a 3,600 megawatt thermal power project in India.
Shares in KSK Energy Ventures Ltd, which has started civil work on the complex in the state of Chhattisgarh, rose as much as 6.7% on the news.
The company has appointed Chinese firm Shandong Electric Power Construction Corp. to design and build the project called KSK Mahanadi, while Indian companies such as Punj Lloyd and Petron Engineering Construction have been offered sub-contracts.
Twenty-seven banks and institutions have offered $2.88 billion in loans, while state-run finance firm IFCI Ltd has agreed to invest $56 million for a 7.72% stake in the project, the company said in a statement.
KSK Mahanadi has signed a bulk power transmission agreement with Power Grid Corp. of India. The company did not say when the project would be completed.
The KSK Group, founded by two finance professionals S. Kishore and K.A. Sastry, has four operational power plants in India with a combined capacity of 279 megawatt, while work on going on three plants aggregating to 4,183 megawatt.
At 10:57 a.m., shares of KSK Energy were trading up 5.1% at Rs181.5, while the main BSE index was up 0.9%.
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First Published: Mon, Sep 20 2010. 11 30 AM IST