Mumbai: Reliance Power Ltd, the generation unit of India’s second largest utility, rose in Mumbai trading after a report that it had completed raising funds for the 4,000MW Sasan power project in central India.
The generator gained 4.1% to Rs120.70 at 11.27am after climbing as much as 5.8%. India’s 30-share benchmark sensitive index advanced 1%. It closed at Rs118.85, up 2.5%.
Mumbai-based Reliance Power completed the fund raising after India Infrastructure Finance Co. Ltd agreed to lend about Rs2,500 crore, the Business Standard reported, without saying where it got the information.
A group of 12 domestic lenders, including State Bank of India and Power Finance Corp. Ltd, had already agreed to give Rs12,500 crore of loans for the project, the newspaper said. Reliance Power will make an announcement this week, according to the report.
Reliance Power, controlled by billionaire Anil Ambani, won bids for three of the 12 so-called ultra-mega power projects that the government is auctioning to help increase India’s generation capacity by 33%.
The company will need as much as Rs60,000 crore to build the three plants and plans to borrow 75% of the funds, Jayarama Chalasani said on 12 February.
The firm was awarded the Sasan project in July 2007. Phase I is scheduled to be completed by December 2011 and phase II by March 2013. Coal will come from a mine allotted by the government.