Reliance Power ties up Rs14,500 crore for Sasan power project

21 April 2009

Reliance Power has tied up Rs14,500 crore funds for its 3,960 MW Sasan ultra mega power project in Madhya Pradesh. This would meet nearly 75 per cent of the estimated cost of project of around Rs19,400 crore, while the rest of the cost will be met through equity finance.

Funds for the country's largest coal-based power plant have been arranged from over a dozen domestic banks and financial institutions led by the State Bank of India, the company said in a release.

The debt funding would be at interest rates of around 12-12.5 per cent, with maturities of 15 to 20 years, JP Chalasani, the company's chief executive, said.

The first two units of the project, with a capacity of 1,320 MW, would be commissioned by March 2012, he said.

''Several other large domestic banks and financial institutions like IIFCL (India & UK), Power Finance Corporation, Rural Electrification Corporation, Punjab National Bank, LIC, Axis Bank, IDBI Bank etc have provided debt facilities to the project," a company statement said.

Sasan will supply power to seven states - Madhya Pradesh, Punjab, Uttar Pradesh, Haryana, New Delhi, Rajasthan and Uttarakhand - according to the release.