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Tata Power completes financing of Jharkhand project
Tata Power Co Ltd has completed financing of a 1,050-MW coal-based thermal
power project in Dhanbad district of Jharkhand.
The Maithon Power Ltd (MPL), a 74:26 a joint venture between Tata Power and
Damodar Valley Corp (DVC) estimated to cost Rs.44.5 billion, is being funded
on a debt-equity ratio of 70:30.
The promoters - Tata Power and DVC - would bring in equity ratio of 74
percent and 26 percent, respectively. The debt for the project amounting to
Rs.31.15 billion is being financed by various banks led by State Bank of
India (SBI).
'The closure of financing for Maithon project is an important milestone and
the unique terms of debt financing provides us more flexibility in the
execution of the project as well as help in controlling costs,' said Prasad
R. Menon, managing director, Tata Power.
DVC Chairman Asim K. Barman also expressed optimism on the issue and said
the private-public partnership and the agreement mark a successful trend,
'that offers hope for more such joint ventures for the power sector in the
future'.
The syndication was oversubscribed by nearly Rs.10.5 billion with the SBI
group taking the largest exposure to the tune of Rs.10 billion.
*- Indo Asian News Service*
*http://www.indiaprwire.com/print/?type=news&id=27170*
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