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GMR Energy ties up funds for Orissa project

28 May 2009 Evaluate

The 1,050-MW Kamalanga thermal power project in Orissa, promoted by GMR Energy, is set to take-off with the company on Wednesday achieving the financial closure by signing a loan agreement with a consortium of 13 banks, led by Infrastructure Development Finance Company (IDFC) Ltd.

 

The project to be implemented by a special purpose vehicle, GMR Kamalanga Energy Ltd, will have a debt component of Rs 3,405 crore, with IDFC contributing Rs 505 crore. The loan is for 16 years. IDFC has also taken a 20 per cent stake in the equity of Rs 1,135 crore in the project, which is expected to be completed in the first quarter of 2012. The Rs 4,540-crore project will start generating power in its first phase in 30 months.

 

Kamalanga Energy has also finalized coal linkage with Mahanadi Coalfields Ltd for the entire capacity of the project. Besides, it has been allotted captive mining lease with a group of prominent developers, including Lanco Power, Reliance and Sterlite, for the fuel linkage. GMR Kamalnaga has awarded the EPC contract to Shandong Electric Company, China, for $456 million.

 

Under a Power Purchasing Agreement with Grid Corporation of Orissa, Kamalanga Energy will sell 25 per cent of the power generated from the project as well as power above 80 per cent plant load factor at a tariff to be fixed by the Orissa Electricity Regulatory Commission. It will also supply power to Haryana Power Corporation, under a 25-year agreement, at Rs 2.86 a unit.

 

GMR Group, which is implementing various infrastructure projects including airports and highways, expects its energy business to contribute more than 55 per cent. The group is already operating a 200-MW diesel power plant in Chennai – the world’s largest – a 220-MW barge-mounted power plant in Karnataka, 370-MW gas-based power project at Vemagiri in Andhra Pradesh.

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