Mumbai, Oct 18 (UNI) Raj West Power Ltd (RWPL), promoted by JSW Energy Ltd (JSWEL), today announced the financial closure of its proposed 1,000 MW lignite-based thermal power project at Barmer in Rajasthan.
The cost of the proposed project is estimated at Rs 5,000 crore, which will be financed through debt and equity in the ratio of 3:1, the company said in a statement here today.
JSWEL has committed the entire 25 per cent equity, fulfilling the requirement of Rs 1,250 crore, while the debt part will be provided by a consortium comprising twelve banks and financial institutions in the form of term loans aggregating Rs 3750 crore.
The power plant is proposed to be a pit head-based project and lignite will be procured from Barmer Lignite Mining Company. The entire power generated will be sold to the three distribution companies (discoms) in Rajasthan, including Ajmer Vidyut Vitaran Nigam Limited (AVVNL), Jaipur Vidyut Vitaran Nigam Limited (JVVNL) and Jodhpur Vidyut Vitaran Nigam Limited (JdVNL), the release added.
The Company has already entered into a Power Purchase Agreement (PPA) with the discoms for sale of power on long-term basis. The tariff payable by the discoms would be fixed in accordance with the tariff orders of RERC.