Anil Ambani-led Reliance Power will save about Rs 6,500 crore in interest costs on funding its Sasan power project, as it has tied up fresh offshore loans from Chinese banks on low interest rates.
The estimated interest cost savings through the offshore loans amounting to $1.1 billion (over Rs 5,000 crore) is even higher than R-Power’s total equity contribution for the ultra-mega power project (UMPP), sources said.
The company’s 4,000 MW project has received final commitments for this loan from Chinese banks, subsequent to which the interest outflow for the project will reduce by over Rs 6,500 crore, they added.
The fresh funding has reduced the total interest cost for the project from Rs 16,175 crore, in the initial financing arrangement, to Rs 9,666 crore after the closure of offshore loans at low interest rates, the sources said.
When contacted, an R-Power spokesperson declined to give details.
