Jindal Power achieves financial closure of Raigarh unit Phase-I

Jindal Power Ltd (JPL), a 100 per cent subsidiary of Jindal Steel and Power Ltd (JSPL), has achieved financial closure of the first phase of its 500 mw power plant being built at Raigarh in Chhattisgarh for Rs 2,142 crore.

A consortium of 12 banks and financial institutions have signed the financing documents for debt totalling to Rs 1,500 crore. The debt has been financed by Power Finance Corporation to the tune of Rs 525 crore, State Bank of India has committed Rs 275 crore while Punjab National Bank will give Rs 169 crore.

Bank of Baroda will finance Rs 100 crore while Indian Overseas Bank, Oriental Bank of Commerce and Central Bank of India will provide Rs 70 crore each. Indian Bank and J&K Bank will give in Rs 50 crore. United Bank of India, State Bank of Hyderabad and State Bank of Patiala will finance Rs 40 crore each.

The debt equity ratio for the project is 70:30 and JSPL will fund the entire 30 per cent equity of Rs 642 crore. This is the first mega power project in the private sector and has been structured and syndicated by SBI Capital Markets.

JSPL had received total sanctions crossing over Rs 2,300 crore against the debt requirement of Rs 1,500 crore. The debt has been raised at 13-year rupee term loan at 8 per cent interest rate.

This project was being monitored by the Prime Minister's Office (PMO) and Inter-Institutional Group (IIG) formed by the power ministry.

"JPL will first set up a 250 mw unit and will subsequently have three more 250 mw units and the Phase I is likely to be commissioned by March 2007," Naveen Jindal, vice chairman and managing director, JSPL said.