Anil Ambani promoted Reliance Power (R-Power) will raise Rs 2,500 crore from IDBI Bank for building an ultra mega power project (UMPP) at Krishnapatnam in Andhra Pradesh. The multi-tranche transaction is expected to begin immediately after signing the letter of credit, according to sources.
The Reserve Bank of India (RBI) had recently approved R-Power’s proposal to raise $2 billion (about Rs 8,000 crore) from foreign banks for the proposed 4,000 megawatt (mw) project. ABN Amro, Standard Chartered and HSBC are believed to be talks with the company to finance the project.
The coal-fired Krishnapatnam project will need Rs 16,000- 17,000 crore. Out of the total capital outlay, the company plans to tie up Rs 14,000 crore as debt and is engaged in talks with a slew of domestic lenders including Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for the purpose.
The Krishnapatnam project is expected to begin operations in 2012-13. R-Power will place orders for equipment soon after the financial closure.
When contacted, an R-Power spokesperson declined to comment on the matter.
Similarly, R-Power is raising about Rs 7,000 crore from a slew of Indian financiers including State Bank of India (SBI), Canara, PFC, REC, IIFCL and Hudco for another UMPP at Sasan in Madhya Pradesh.
The RBI has given its clearance for external commercial borrowings worth $2 billion for the coal-fired Sasan project. About $1 billion is expected to be raised from three Chinese banks including China Exim Bank, Chinese Development Bank and China Export & Credit Insurance Corporation (Sinosure). The remaining debt will be raised from foreign banks such as ABN Amro and HSBC.
The shares of R-Power ended 0.59 per cent up at Rs 170.90 on the Bombay Stock Exchange (BSE). R-Power has risen 25.34 per cent in the last one month.
