Reliance Power to borrow Rs76,473 cr to fund projects

Reliance Power to borrow Rs76,473 cr to fund projects

New Delhi: Anil Ambani Group’s Reliance Power Ltd plans to borrow Rs76,472.80 crore to fund 12 projects, including the 3,960-MW Sasan ultra mega power project, aimed at producing 24,200 MW of electricity.

The company has already asked three banks to arrange $6 billion (Rs 24,000 crore) of secured syndicated loan, Reliance Power said in its draft red herring (DRHP)prospectus filed with market regulator SEBI.

According to the DRHP, Macquarie India Advisory Services, ABN Amro Bank and Deutsche Bank have been mandated to arrange syndicated loans of $2 billion each.

The proposed loan would be in addition to about Rs12,000 crore, which the company expects to raise through an initial public offering (IPO). The maiden issue will surpass the hitherto biggest IPO of nearly Rs9,200 crore in India, brought by realty developer DLF.

Among major projects, Reliance Power will develop an ultra mega power project at Sasan in Madhya Pradesh. The 3,960-MW project is expected to be the largest pit-head coal-fired power project at a single location in country. It is scheduled to be completed by April 2016.

The company expects to complete the Rosa Phase I, a 600- MW coal-fired project in Uttar Pradesh currently under construction, by March 2010. The Rosa Phase II (600-MW expansion project) is scheduled to be commissioned by September 2010.