NTPL ties up Rs 2,500 crore in loan for Tuticorin power unit

NLC-Tamil Nadu Power Limited (NTPL), a joint venture company promoted by Neyveli Lignite Corporation (NLC) and Tamil Nadu Electricity Board (TNEB), has signed a rupee term-loan agreement with a consortium of nine banks led by Bank of Baroda. The consortium has agreed to give a loan of Rs 2,500 crore for the Rs 4,900-crore project.

The consortium includes Bank of Baroda contributing Rs 500 crore, Bank of India with Rs 450 crore, Allahabad Bank, Syndicate Bank, Dena Bank, Punjab and Sind Bank Rs 250 crore each, Indian Bank, Corporation Bank, Bank of Maharastra Rs 150 crore each and Oriental Bank of Commerce with Rs 100 crore. The members have agreed to lend the money at an interest rate of 9.70 per cent per annum (quarterly basis).

NTPL was promoted by NLC and TNEB with equity participation in the ratio of 89:11. NTPL is executing a 1,000 MW (2X500 MW) coal-based thermal power station at Tuticorin in Tamil Nadu, adjacent to the existing thermal power station owned by TNEB.

The project, sanctioned by the central government in May 2008, will have a debt-equity ratio of 70:30. Total project cost is estimated to be around Rs 4,909.54 crore at April 2007 prices, which includes interest during construction (IDC) of Rs 597.33 crore and foreign exchange component of Rs 716.06 crore.

Fuel (coal) linkage for the project was tied up with Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited. Coal will be transported from Orissa by rail-cum-sea route through Paradip port, while land for the project was taken from Tuticorin Port Trust (TPT) on a long-term lease basis.

The first unit is expected to be commissioned in March 2012, followed by the second in August 2012.