IFC to fund Tata Power's 4,000 MW Mundra UMPP

International Finance Corporation (IFC), the private sector lending arm of the World Bank, has decided to fund the 4,000 MW ultra mega power project (UMPP) to be developed by Tata Power at Mundra in Gujarat.

PTI adds: "We are talking to the Tatas, and will participate in the project through a mix of debt and equity. We will also help them in obtaining syndicated loans from other financial institutions," Neil Gregory, manager, South Asia department of IFC, said.

Tata Power has secured the contract to develop the Mundra project on a build-own-operate (BOO) basis with an estimated cost of Rs 16,000 crore. The project, to be developed over seven to eight years, was awarded to Tata Power on the basis of a tariff-based international competitive bidding by the ministry of power.

Tata Power has already signed power purchase agreements (PPAs) with seven power distribution companies that have agreed to evacuate power from the Mundra project after its completion. The Rs 16,000-crore project would supply 1,900 MW to Gujarat, 800 MW to Maharashtra, 500 MW to Punjab and 400 MW each to Haryana and Rajasthan. The Gujarat Distribution Company would be the lead procurer of the project on behalf of all the power distribution companies.