IIFCL to give Rs 1,800 cr to Mundra power project

State-owned India Infrastructure Finance Company Ltd (IIFCL) has sanctioned Rs 1,800 crore to the Tata Group-promoted Mundra Ultra Mega Power Project (UMPP) and is also planning to extend Rs 1,000-crore credit to the Sasan power project, being developed by Reliance.

"We have sanctioned a loan of Rs 1,800 crore for the Tata's Mundra project and would also provide loans for other UMPPs bagged by Reliance such as Sasan and Krishnapatnam,"

IIFCL Chairman and Managing Director SS Kohli said.

The company, he said, would provide Rs 1,000 crore for the Sasan project being developed by the Anil Ambani-led Reliance Power. Kohli said the company is bullish on UMPPs and would also provide loans for the execution of other mega power projects.

Tata Power had bagged the first of the series of nine UMPPs from the government in December last year to generate 4,000-Mw of energy at an estimated cost of Rs 16,000 crore.

The project will come up at coastal site at Mundra in Gujarat. Reliance Power won the bid for the Sasan project to be developed at Madhya Pradesh and Krishnapatnam project in Andhra Pradesh.

While the Sasan project is expected to cost Rs 14,000 crore, the 4,000-Mw Krishnapatnam project would require an investment of over Rs 16,000 crore.

The government is proposing to add 78,000 Mw of additional power generation capacity during the Eleventh Plan with an estimated investment of $177 billion.