Karnataka
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- Sat, Oct 21 2006 04:23:04 AM
Agencies
Oct 21: The Hyderabad-based Lanco group-promoted 1,015 Mw Nagarjuna Power Project at Mangalore in Karnataka has achieved financial closure.
A consortium of 14 banks and financial institutions, led by Power Finance Corporation, has financed the project loan of Rs 3,474 crore.
Other lenders to the project include Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank, Dena Bank, Indian Bank, Indian Overseas Bank, IDBI, IIFCL, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank and Union Bank of India.
The loan book was over subscribed, Lanco stated in a press release here on Tuesday.
The coal-fired thermal project, which is to be set up at a cost of Rs 4,342-crore, is being jointly funded through a mix of debt and equity. Of the equity component, Lanco will have 74 per cent stake with balance held by the Nagarjuna group.
The project is expected to be commissioned by the last quarter of 2009.
While 90 per cent of the power generated will be supplied to Karnataka, the balance 10 per cent will be supplied to Punjab.