Maithon Power Ltd (MPL), the Rs 5,752 crore power project floated by Damodar Valley Corporation (DVC) and BSES, has appointed SBI Caps as principal arranger for debt for the project. IDBI, ICICI and SBI Caps were in the race for bagging the mandate.
J Chatterjee, financial advisor, DVC, said the corporation is looking at 70:30 debt equity ratio for MPL.
"While the equity will be shared equally by DVC and BSES, the debt portion will be arranged by SBI Caps," Chatterjee said.
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The foundation stone for the 1000 mw project was laid almost one-and-half years ago but little progress has been made owing to land acquisition delays. MPL needs 1,200 acres at Nirsa in Dhanbad, but has failed to acquire any land thus far.
The first phase is scheduled to be commissioned by September 2005.
MPL is one of eight projects that DVC will take up in the 10th and 11th Plans. The investment envisaged for this is Rs 19,000 crore.
The corporation will seek budgetary support to part-finance this plan which will increase DVC's capacity by 2780 mw. The existing capacity of DVC is 2761.5 mw.
DVC would be using bonds, borrowings and internal accruals to fund the balance cost of the eight projects. Of the eight, only one would be a hydroelectric generation unit, to be set up in Balpahari in Jharkhand at an estimated Rs 320 crore. The commissioning target for this 320 mw project was 2012.