Indian power utility Tata Power Ltd said on Thursday it has signed agreements with a consortium of banks to part fund its upcoming 4,000 megawatt power plant in the Western state of Gujarat. Debt from Indian banks and multilateral agencies would account for three quarters of the project cost, which is estimated at $4.2 billion. Tata Power, part of the diversified Tata group, said in a statement the first of the five power units will be set up in September 2011 and the entire plant would be commissioned by 2012.
The power would be supplied to five states, it said. About $1.8 billion would funded via external commercial borrowings from agencies including the Asian Development Bank (ADB) and the International Finance Corp. Separately, the ADB said in a statement on Thursday it has approved a loan for $450 million for the project. Another 55.5 billion rupees ($1.38 billion) would be rupee denominated loans from Indian financial institutions and the remainder would be equity.
Read more in The Economic Times article.
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