Jindal Power limited (JPl), the energy wing of Jindal Steel & Power limited (JSPl) which owns and operates a 1000 MW (4x250) thermal power station in the poverty-hit Tamnar area in Chhattisgarh’s Raigarh district, that was commissioned in 2008 — is fast implementing an expansion project of 2400 MW (4x600 MW) at the same location at an estimated cost of Rs 13,500 crore, a statement of the company informed.
The 1000 MW power plant has been operating at a plant load factor of 95-98 per cent from the past two years and selling power through short term and medium term PPAs. “The expansion project of 2400 MW has been divided into two phases of 1200 MW (2x600MW) each. The first phase of 1200 MW has been granted coal linkage by the Government of India,” the State informed. JPl has achieved financial closure for the first phase expansion of 1200 MW (2x600 MW).
A consortium of nine lenders led by the State Bank of India (SBI) has sanctioned a Rupee Term loan of Rs 5,418 crore to Jindal Power limited (JPl) for its 1200 MW (2x600 MW) Power Project being implemented at Tamnar, Chhattisgarh. The Consortium of banks, apart from SBI, includes HDFC Bank, Canara Bank, Kotak Mahindra Bank, l&T Infra Finance, State Bank of Bikaner & Jaipur, State Bank of Patiala, State Bank of Hyderabad and State Bank of Travancore. The execution of loan agreements was concluded on Wednesday at a signing ceremony in New Delhi.
RS Sharma, Managing Director, JPl said: “On completion of the expansion project of 2400 MW, JPl will have one of the largest single location capacity of 3400 MW in India.” He added that JPl intends to become a significant thermal power player in India over the next two years.” Speaking on the occasion, BS Raman, Director-Finance, JPl said, "We have received strong support from the banking community for our financial closure, which demonstrates their confidence and trust in the project". The project envisages a total outlay of Rs 7,740 crore, which is to be funded in a debt-equity ratio of 70:30 with a Rupee Term loan of Rs. 5,418 crore and equity/internal accruals of Rs 2,322 crore, he further added.
The transaction is a blend of Project Finance and conventional debt financing, arriving at an optimal risk allocation structure between JPl and the lenders. This accords more flexibility to JPl for its other borrowing programmes. The Term loan facility has a door-to-door tenor of about 11 years 6 months. The project is in an advanced stage of construction and would be commissioned during FY 2013-14 Established in 2002, JPl, a subsidiary of Jindal Steel & Power ltd. (JSPl), is contributing significantly to the growing needs of power in the country. The company in realising its dream to make India a power sufficient nation and to meet the ever accelerating demands in the Industrial and Social development sector, has set up India’s first mega power project in the private sector at Tamnar in Chhattisgarh.