ADAG ties up funds for Rosa power project

NEW DELHI: Reliance Power on Tuesday said it has achieved financial closure for the 1,200 mw Rosa power project being planned in Uttar Pradesh. Rosa Power Supply Co, a wholly-owned subsidiary of the Anil Ambani-led firm, has sealed a long-term loan from a group of banks and institutions led by IDBI Ltd.

Market sources said the company has already raised Rs 2,000 crore for the said project. The project would entail an investment of over Rs 10,000 crore and would be one of the larger private sector investments in UP.

The company has tied up for financing with several banks including IDBI Bank, the lead lender to the project, Punjab National Bank, United Bank of India, Andhra Bank, Axis Bank, Indian Bank, Oriental Bank of Commerce, and LIC.

The Rosa Project is expected to supply 900 mw to UP. While the stage-I of the project would be operational within this year, the expansion phase would be operational by 2012, the company said.