Tata Power acquires SPV for Mundra project

Tata Power Company has announced the acquisition of Coastal Gujarat Power, a special purpose vehicle (SPV) formed for Mundra Ultra Mega Power Project (UMPP). A formal execution of the documents took place between Power Finance Corporation (PFC) and Tata Power under the auspices of the ministry of power.

According to an official release issued by Tata Power to the BSE today, the signing of the share purchase agreement, escrow agreement, hypothecation agreement and port service agreements by PFC, bankers, procurers and Tata Power now allows it to go ahead with the various project development activities. Tata Power has provided a performance bank guarantee of Rs 300 crore to the PFC.

Prasad Menon, managing director, Tata Power said: "This acquisition is a significant milestone towards progress on the Mundra Ultra Mega Power Project. We continue to look forward to the support of the power ministry and the Gujarat government for all necessary clearances required for the project".

BS Reported it First: Tatas to take hold of Mundra project