Reliance Power has achieved financial closure for its 4,000 MW ultra mega power plant (UMPP) at Sasan, Madhya Pradesh following the commitment it received from India Infrastructure Finance Company Ltd (IIFCL) to provide Rs 2,500 crore.
The Sasan power project was Rs 2,500 crore short of the Rs 15,000 crore it needed to tie-up the entire project cost. Of the total, IIFCL is likely to provide Rs 400 crore and its overseas subsidiary IIFCL Plc Rs 2,100 crore. A consortium of 12 domestic banks have already committed around Rs 12,500 crore, with State Bank of India providing Rs 3,500 crore and Power Finance Corporation lending Rs 1,800 crore.
The Sasan UMPP estimated to cost Rs 20,000 crore is likely to be funded with a debt equity ratio of 4:1. The company has already started work on the project with Phase I scheduled to be completed by December 2011 followed by Phase II in March 2013.
Source : ProjectsToday
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