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R-Power ties up funds for Nagpur project

28 Jul 2009 Evaluate

Reliance Power has achieved financial

closure for its 300 MW group captive power project being set up at Butibori near Nagpur in Maharashtra. This is the third project of the company that has achieved financial closure since April this year.

R-Power has already tied up debt of over Rs 16,500 crore for its 4,000 mw Sasan Ultra Mega Power Project and second phase expansion of its 1,200 mw Rosa Power Project in Uttar Pradesh. For the Butibori Project, R-Power has tied up loans of over Rs 1,500 crore that represents 80% of the project cost of the first capacity of 300 MW. Axis Bank was the lead bank for the project financing, and the other banks and financial institutions, which signed the loan agreements for the expansion, include State Bank of India, Union Bank of India, United Bank of India, South Indian Bank, Syndicate Bank, UCO Bank, Allahabad Bank, Dena Bank, Life Insurance Corporation of India, Corporation Bank, Karur Vysya Bank and State Bank of Hyderabad.

The project would meet the power requirements of Butibori, Hingna and other industrial consumers across Maharashtra at competitive tariffs. The project also involves setting up of its own transmission and distribution network in the nearby industrial areas, thereby ensuring supply of uninterrupted and quality power.

The Butibori Project will become completely operational in financial year 2011-12. The total project size is expected to be 600 MW. The equipment for the project would be supplied by Shanghai Electric that has been present in other power projects of RPL. All approvals and clearances for the project are in place and the coal will be sourced from Western Coalfields. The first phase of the construction (300 MW) is expected to be completed by 2011.crackcrack

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