Gayatri Projects arranges funds for Krishnapatnam power project

Gayatri Projects arranges funds for Krishnapatnam power project

Hyderabad: Infrastructure firm Gayatri Projects Ltd on Monday said it has arranged funds for the 1,320MW coal-fired power project it is developing in Krishnapatnam in a joint venture with Singapore-based Sembcorp Industries Ltd.

The project involves a total outlay of 6,869 crore, including 5,151 crore of debt and 1,718 crore in equity. Gayatri holds 51% of the joint venture Thermal Powertech Corp. India Ltd (TPCIL) and Sembcorp the remaining 49%.

The debt was arranged from lenders including Rural Electrification Corp. Ltd, Power Finance Corp. Ltd, Life Insurance Corp. of India, Punjab National Bank, United Bank of India, Bank of Baroda, Syndicate Bank, Oriental Bank of Commerce and PTC India Financial Services Ltd.

Gayatri said it has obtained key approvals for the power project and expects the project to take off by mid-2013. Mahanadi Coalfields Ltd will supply 70% of the coal required and the company will import the balance it needs.

Thermal Powertech plans to add 1,320MW of power generation capacity in the next phase at the same location, Gayatri added in a statement on Monday. The joint venture has acquired 1,408 acres required for both the phases from the Andhra Pradesh Industrial Infrastructure Corp. Ltd, it said.