By IANS
Hyderabad : Alakananda Hydro Power Company Limited (AHPCL), a GVK group company, Monday announced that it achieved financial closure for its 330 mw Shrinagar hydro electric project being set up in Uttarakhand at a cost of Rs.20.69 billion.
The project will be funded through a debt equity ratio of 80:20, said a company statement here.
The debt component of Rs.16.55 billion is funded in rupees (Rs.14.94 billion) and in US dollars (Rs.1.61 billion). The equity of the project will be Rs.4.14 billion, said A. Issac George, chief financial officer, GVK power and infrastructure Limited.
The debt has been syndicated by Axis Bank (formerly UTI Bank). Punjab National Bank is the lender’s agent and Axis bank is the security trustee.
The banks/financial institutions participating in the consortium include Andhra Bank, Central Bank of India, Dena Bank, Indian Bank, India Infrastructure Finance Company Limited and Industrial Development Bank of India Limited.
AHPCL is implementing the project following an implementation agreement signed last year with the governments of Uttar Pradesh and Uttarakhand.
As per the power purchase agreement, Uttar Pradesh Power Corporation Limited (UPPCL) has agreed to purchase 88 percent of the energy generated by the Shrinagar Power Project. The other 12 percent shall be supplied free of cost to Uttarakhand.
The electro-mechanical works have been awarded to Bharat Heavy Electrical Limited (BHEL). The plant will be ready for commercial operations by early 2011.
GVK is also developing a 600 mw thermal project in Punjab and two hydro projects totalling 700 mw in Uttarakhand.
The GVK-led consortium has been mandated to operate, manage and develop India’s busiest airport, the Chhatrapati Shivaji International Airport in Mumbai.
GVK has so far invested over Rs.50 billion into infrastructure projects and has on hand projects in the pipeline of over Rs.130 billion.