IFC will fund Tata’s Mundra ultra mega power project

IFC will fund Tata’s Mundra ultra mega power project

New Delhi: The private sector lending arm of the World Bank, International Finance Corporation (IFC), has decided to fund the 4,000MW ultra mega power project?to?be developed by Tata Power Ltd at Mundra, Gujarat.

“We’re talking to the Tatas and will participate in the project through a mix of debt and equity. We’ll also help them to obtain syndicated loans from other financial institutions," said Neil Gregory, IFC’s manager, South Asia department.

The quantum of equity and debt to be provided by IFC, he said, would be determined after the negotiations. Tata Power secured the contract to develop the project over seven-eight years on a build-own-operate basis with an estimated cost of Rs16,000 crore. The project was awarded on the basis of a tariff-based international competitive bidding by the power ministry.

It has decided to develop 10 such power projects through private sector participation to meet the growing demand. These projects are expected to be commissioned during the 12th Plan (2012-17).

Union power minister Sushil Kumar Shinde had announced on Wednesday that the 10th project would be set up at Sundergarh, Orissa.