GVK Power mops up funds for Punjab plant

2 Feb 2010, ET Bureau

MUMBAI: Hyderabad-based infrastructure company GVK Power and Infrastructure (GVKPIL) has managed to arrange funding for its 540 mw coal-based power
plant in Punjab.

The company has raised Rs 2,400 crore in debt to part finance the Rs 3,200-crore project named Goindwal Sahib. The GVK group is chipping in with Rs 800 crore as its equity contribution.

IDBI, lead banker of the 13-member consortium, is understood to be contributing a Rs 450-crore term loan for the project, which is expected to be completed in 36 months. “With Goindwal Sahib, we will be adding 540 mw capacity to our power portfolio. It holds great deal of significance as it is the first coal-based thermal power plant of GVK,” Issac George, chief financial officer, GVKPIL, told ET. GVK currently has a capacity of 900 mw with an additional 970 mw in the pipeline.

GVK expects to meet the demand for coal from its captive mines, known as GVK Coal and Seregarha Mines, in Jharkhand. Instead of inviting bids separately for engineering, procurement and construction, the company has given BTG (boiler turbine and gas) package to the state-owned Bhel as this helps power companies save costs.

The rest of the plant will be built by Delhi-based Infrastructure company Punj Llyod. Goindwal Sahib will be the first private power plant in Punjab.