The state government and its strategic partner AES have made additional equity funding of Rs 485 crore for Odisha Power Generation Corporation's (OPGC) expansion project at a ratio of 51:49, officials today said.
The state government has released Rs 247.35 crore in favour of OPGC as equity contribution in proportion to its share of 51 per cent, while US-based AES has brought its share of additional equity of 35.39 million USD as FDI equivalent of Rs 237.65 crore.
The contributions by the two partners has taken OPGC's paid up equity to about Rs 975 crore from the existing equity base of Rs 490 crore, they said.
"This has demonstrated a positive move by both of the shareholders in line with the broader understanding of mutual cooperation for successful implementation of the ongoing OPGC expansion project of 2x660 MW super critical units at Ib Thermal Power Station," a senior official said.
The infusion has come as a part of the equity requirement for 2016-17 as agreed by both shareholders in line with the schedule envisaged in the financing agreements entered with the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), he said.
As per the financing schedule, the state government and AES are required to bring together further equity of about Rs 1,156 crore in the 2017-18 fiscal, out of which AES's share of Rs 584 crore is expected to come in as FDI, officials said.
The state government so far has been extending its cooperation in obtaining permits, licences, fuel security arrangement and land acquisitions and other logistics for the expansion project, the construction of which was flagged off by Chief Minister Naveen Patnaik in February 2014.
The expansion of the two units of power plant, which are under construction, are scheduled to go for commercial operation in 2018.
The funding of the project, along with development of mines with an estimated total cost of Rs 11,547 crore, is based on a Debt to Equity ratio of 75:25, the officials said.
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