Tractebel Of Belgium Hikes Stake In Jindal Power Project To 65

Belgium-based Tractebel has increased its stake from 50 to 65 per cent in Jindal-Tractebel Power Companys 240 mw power project in Karnataka. The changed equity structure would require Tractebel to make an additional investment of Rs 145 crore in the project.

Tractebel is getting the additional liquidity through its subsidiary in Mauritius to meet the shortfall faced in tying up the rupee finances for the project.

The initial paid-up capital for the project was Rs 360 crore, with the Jindals and Tractebel SA each investing Rs 180 crore in the Rs 1,100 crore project.

The project was initially a 50:50 joint venture between the Jindals and Tractebel, which would now change with Tractebel being the majority shareholder. The Jindals would hold 35 per cent stake in the project.

 

The Foreign Investment Promotion Board (FIPB) approved the change in the equity structure last Saturday.

Company sources say that Tractebel had agreed to fund any shortfall in funds which could not be raised in the form of debt while achieving financial closure.

There was a gap of Rs 145 crore after financial closure for the project was achieved on March 31 this year. This shortfall would be funded by Tractebel SA which it had undertaken to finance, in terms of a guarantee.

The Cabinet Committee on Foreign Investment (CCFI) had given its approval to the project in October last year. Apart from this, the FIPB also approved EuroKapital and Krishna Godavaris proposals for foreign direct investment (FDI) last Saturday.

EuroKapitals approval is to bring in an FDI of Rs 160 crore for its 156 mw liquid sulphur heavy stock (LSHS) based barge mounted power plant in Mangalore.

The approval amounts to 95 per cent of the total equity of Rs 168 crore being held by EuroKapital.