Friday, April 25, 2008

Tata Power get financers for 4,000 MW Mundra Ultra Mega Prower Project

Tata Power announced the completion of signing of financial agreements for 4,000 MW ultra mega power project (UMPP), coming up at Mundra, Gujarat under the special purpose vehicle (SPV) Coastal Gujarat Power (CGPL). The cost of the project is estimated at Rs 170 billion (USD 4.2 billion) with the first of the five units to be commissioned in September 2011. The entire plant is expected to be commissioned by end of 2012.

A consortium of banks including leading multilateral agencies and Exim Banks are participating in the financing of this project. The financing comprises of equity of Rs 42.50 billion, external commercial borrowings (ECB) of upto USD 1.8 billion (nearly Rs 72.22 billion) and loans of upto Rs 55.50 billion. The ECBs include lendings from The Export-Import Bank of Korea, International Finance Corporation, Korea Export insurance Corporation, Asian Development Bank, BNP Paribas and Rupee lenders include SBI (Lead bank for rupee lenders), India infrastructure Finance, Housing and Urban Development Corporation, Oriental Bank of Commerce, Vijaya Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Travancore and State Bank of Indore. SBI Caps are the financial advisors and mandated lead arranger for rupee loans.

Speaking on the occasion, Prasad N Menon, managing director, Tata Power said, ``The signing of the financing agreements for Mundra UMPP is an important milestone. The good response demonstrates the faith of the lenders in our execution capabilities and expertise to complete the project in time. The terms of debt financing provides us long tenure of loans supporting our competitive bid price assumptions.``

The 4,000 MW Mundra ultra mega power project (UMPP) is the first of the UMPP which heralds the entry of super critical boiler technology in India for the first time which is significantly environment friendly than the conventional ones using sub-critical boiler technology, the company said. The project site, nearly 1,000 hectares is located south of Tunda Wand village in Mundra Taluka, Kutch district of Gujarat. The project consists of 5 units, each of 800 MW which will generate saleable power of 3,800 MW to be supplied to five states namely Gujarat, Maharashtra, Rajasthan, Haryana and Punjab. The super-critical technology and the choice of unit sizes will help the project achieve higher efficiency thus saving fuel and reducing greenhouse gas emissions vis-à-vis conventional technology prevailing in the country.

The site preparatory works are in progress and orders for all major equipments have been placed. The company has signed the contract for complete Boiler island scope on EPC basis with Doosan Heavy Industries & Construction, Korea and contract for supply of Steam Turbine Generators with Toshiba Corporation. The project has been comprehensively covered by a seamless insurance cover by Oriental Insurance.

Shares of the company gained Rs 33, or 2.49%, to settle at Rs 1358.8. The total volume of shares traded was 123,337 at the BSE (Thursday).

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