IDBI Bank, which has been mandated to raise Rs 13,000 crore syndicated loan for Reliance Power’s Krishnapatanam Ultra Mega Power Project (UMPP) has put the process on hold.

RPower has designated IDBI Bank as the lead arranger for the syndication. The bank is likely to take few more weeks to begin the syndication process, a source close to the development said.

The lender was supposed to approach other banks early this month to join the consortium but is yet to start the process owing to the prevailing market conditions, the source said.

“The bank was supposed to approach other lenders early this month. However, the process (of raising the amount) has been held back for the time being. It may take a few more weeks to commence,” the source said.

Reliance Power was not available for comments.

IDBI Bank has already committed its part of the Rs 13,000 cr-loan and will be primarily looking at the Rupee part of the debt.

Apart from IDBI Bank, Power Finance Corporation (PFC) is understood to have given in-principle nod to join the bank consortium, the source said.

More In: Companies | Business