Special Correspondent

The cost of the Orissa project is met through 3:1 debt-equity ratio

BANGALORE: GMR Kamalanga Energy, part of the GMR group, on Wednesday concluded financial closure for its 1,050 MW coal-based thermal power station to come up at Kamalanga in Denkanal district, Orissa.

The Rs. 4,540 crore project is being met through a combination of debt and equity in the 3:1 ratio, with the debt component of Rs. 3,405 crore tied up with 13 banks, including State Bank of India. IDFC will be the sole debt arranger and syndicator of the debt, GMR said. The loan tenure will be 16 years. The equity portion of Rs 1135 crores is being tied up by GMR Energy and IDFC in the ratio of 80:20.

GMR Kamalanga Energy Ltd , a special purpose vehicle of GMR Energy, has awarded the engineering and construction contract to Shandong Electric Company of China. The ‘notice to proceed’ was issued on Wednesday to the contactor.

The company said it had received coal linkage to meet the entire capacity and the Union Coal Ministry had allocated the Rampia coal block in Orissa. Development of the coal block would take place simultaneously with the power project. GMR has signed a power purchase agreement with Grid Corporation of Orissa to sell 25 per cent of the power generated and another agreement to supply 323 MW power to the Haryana Power Generation Corporation.

According to GMR Kamalanga Energy Managing Director K.V.V.Rao, there is no displacement of people from the project site.