Financial closure for GVK Power’s Punjab project by month-end
Date: 14-10-2009GVK Power & Infrastructure Ltd (GVKPIL) is poised to achieve financial closure for the Punjab-based Goindwal Sahib 540 MW (2x270MW) coal project by the month-end. Bankers, led by IDBI and its consortium partners, have taken up the proposal with their respective boards for approvals. The company expects the process to be completed before October-end.
The Rs 3,000-crore project would be developed based on a debt-equity ratio of 75:25. The company had won this project from the Government of Punjab through international competitive bid process in 2000 and signed up for the power purchase agreement (PPA) in 2006.
All the clearances for the project, including environmental clearances, are ready. The company would source coal from its captive mines in Tokisud North sub-block in Jharkhand. While the company has signed up for a coal transportation deal with the Railways, it has awarded BHEL the mandate for the boiler turbine and generator package, while Punj Lloyd has been entrusted with the remaining work. crackcrack