Maithon Power completes financing for Rs 4,450 cr power project

New Delhi, Feb 5 (UNI) Tata Power Ltd today said Maithon Power Ltd (MPL), a 74:26 joint venture between it and Damodar Valley Corporation (DVC) has completed the financing for the 1050 MW thermal power project at an estimated cost of Rs 4,450 crore.

The project, being set up at Dhanbad in Jharkhand, will be funded on a debt-equity ratio of 70:30, the company said in a statement.

Tata Power will bring in 74 per cent of equity, while the DVC will infuse 26 per cent of equity, it added.

The Rs 3,115 crores debt is being financed by various banks led by the State Bank of India (SBI).

SBI Capital Markets Ltd (SBICAP) is the sole financial advisor and arranger of debt for the project.

MPL is executing 1050 (2 x 525) MW Maithon Right Bank Thermal Power Plant.

The project will comprise of two generating units of which the first unit of 525 MW is expected to be commissioned by October 2010, which is in time to meet the 2010 Delhi Commonwealth Games requirements, the statement said.

The second unit will be commissioned by March 2011. The long-term coal linkage has been allotted from the nearby Bharat Coking Coal Ltd (BCCL) mines and water allocation is from the adjacent Maithon reservoir.

''MPL has also signed Power Purchase Agreements with DVC for 300 MW and is the lowest bidder for 309 MW power requirements for Distribution Licensees of Delhi,'' the statement said.

The company has obtained open access from Power Grid Corporation of India to transmit power through their infrastructure to the power deficit Northern States, it added.

UNI MP AK HS1534