Sterlite Energy ties up Rs 10k cr for Talwandi Sabo project

Vedanta Group company Sterlite Energy has arranged Rs 10,000 crore for setting up the Talwandi Sabo thermal power plant in Punjab that is expected to be commissioned by 2012.

"The company (Sterlite) has completed its formalities with regard to the financial closure of 1,980 MW Talwandi Sabo power plant as it has tied up with funds," a senior official of Punjab State Electricity Board (PSEB) told PTI.

Maintaining that the work on project was going as per schedule, PSEB official said the company had already placed Engineering, Procurement and Construction (EPC) order worth Rs 500 crore for setting up the project.

 Sterlite Energy, which bagged the Talwandi Sabo thermal project on September 1, 2008, was to complete the project's financial closure within 12 months from the date of the allotment of the project but it could not do so due to the global meltdown.

However, the company had announced that it would complete the closure by December 2009.

Financial Closure refers to the stage in which firms declare tying up of funds from banks and financial institutions and payment schedules to contractors for carrying out the project.