| * State Bank of India Group to contribute Rs 1,000 crore |
| * Orders for main equipments have been placed |
| * Site preparatory works are in progress |
| Mumbai, February 5, 2008: Maithon Power Limited (MPL), a 74:26 joint venture between The Tata Power Company Limited (Tata Power) and Damodar Valley Corporation (DVC) announced completion of its financing for the 1050 MW coal based thermal power project, being set up in Dhanbad District of Jharkhand State. The Project, estimated at a cost of Rs. 4,450 Crores is being funded on a debt-equity ratio of 70:30. The promoters namely Tata Power and DVC would bring in equity in a ratio of 74% and 26% respectively. The debt for the project is Rs. 3115 Crores and is being financed by various banks led by State Bank of India (SBI). |
| SBI Capital Markets Ltd. (SBICAP) is the sole financial advisor and arranger of debt for the project. The syndication was over subscribed by nearly Rs. 1050 Crores with The State Bank of India Group taking the largest exposure to the tune of Rs 1000 Crores. The consortium of 17 Banks, led by State Bank of India include Allahabad Bank, Bank of Baroda, Canara Bank, Central Bank, Dena Bank, Indian Overseas Bank, J&K Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Tamilnadu Mercantile Bank, UCO bank and more. |
| Taking cognizance of the huge power deficit in the country, the promoters namely Tata Power and DVC have infused equity in excess of the upfront equity requirement as stipulated by the lenders. The promoters have allocated the funds prior to the financial closure to ensure the project is commissioned in time. |
| Mr. Asim K. Barman, Chairman, Damodar Valley Corporation said "We are happy on this landmark occasion of Maithon Project. This public-private partnership is an important initiative towards meeting the power supply needs of the country. For us, the agreement marks a successful trend and offers hope for more such joint initiatives for the power sector in the future." |
| Speaking on the occasion, Mr. Prasad. R. Menon, Managing Director, Tata Power said "The closure of financing for Maithon project is an important milestone. The attractive financing demonstrates the faith of the lenders in the promoters, their execution capabilities and expertise to complete the project in time. The unique terms of debt financing provides us more flexibility in the execution of the project as well as help in controlling costs." |
| MPL is a Joint venture company between Tata Power and Damodar Valley Corporation and is executing 1050 (2 x 525) MW Maithon Right Bank Thermal Power Plant. MPL has obtained all major clearances & permits for the project. The site preparatory works are in progress and orders for main equipments have been placed. The project will comprise of two generating units of which the first unit of 525 MW is expected to be commissioned by October 2010, which is in time to meet the 2010 Delhi Commonwealth Games requirements. The second unit will be commissioned by March 2011. The long-term coal linkage has been allotted from the nearby Bharat Coking Coal Ltd (BCCL) mines and water allocation is from the adjacent Maithon reservoir. |
| MPL has also signed Power Purchase Agreements with DVC for 300 MW and is the lowest bidder for 309 MW power requirements for Distribution Licensees of Delhi. The Company has obtained open access from Power Grid Corporation of India to transmit power through their infrastructure to the power deficit Northern States. |
| Maithon Power Project |
| Maithon Power Project is a Mega Power Plant of 1050 MW, green field coal based generation project located at Maithon in the state of Jharkhand. The site is about 250 km from Jamshedpur & Ranchi and 25km from Asansol. The site is well connected with proximity to National Highway 2 and also the rail network of Howrah-Mugal Sarai Grand Chord line of Eastern Railways. The total land required for the project is about 1120 acres and a significant portion of the land has been acquired by DVC. In addition to supplying power to DVC, power from the Maithon Project is to be exported to power deficit northern states. |
| About Tata Power |
| Tata Power is India's largest private sector power utility with an installed generation capacity of over 2300 MW and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. The Company has successful public-private partnerships in Generation, Transmission and Distribution - "North Delhi Power Limited" with Delhi Vidyut Board for distribution in North Delhi, 'Powerlinks Transmission Ltd.' with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and 'Maithon Power Ltd.' with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It has recently acquired 30% stake in Coal Companies at Indonesia and is developing the first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. With its track record of technology leadership, customer care and redefining contours of the Indian power sector, Tata Power is poised for a five-fold growth and committed to 'lighting up lives' for generations to come. |
| About Damodar Valley Corporation (DVC) |
| DVC came into existence on the 7th July 1948 by an Act of Central legislature, as the first multipurpose river valley project of independent India. The members of the Corporation are represented from the Central government, West Bengal government and the Jharkhand government. DVC has over the years prioritized generation, transmission & distribution of power not only within its Command Area in Jharkhand & West Bengal states but also in exporting to other power-deficit states while retaining its priorities in other function viz "� irrigation, flood control, soil conservation etc. within its Command Area. DVC is also instrumental in both capacity addition and rural electrification programmes of the Ministry of Power, Government of India. |
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