GMR ties up Rs 3,405 crore for thermal power project in Orissa

MUMBAI: GMR Kamalanga Energy, a subsidiary of the GMR group on Wednesday said it has tied up Rs 3,405 crore for its coal-based 1,050 megawatt thermal power project in Orissa. A consortium of 13 banks led by IDFC will fund the debt for the project, while the equity portion is being tied up by GMR Energy and IDFC in the ratio of 80:20, the company said in a statement to the stock exchanges.

State Bank of India, Bank of Baroda, Canara Bank, Central Bank of India, Corporation Bank, Indian Bank, United Bank of India, IDBI Bank, Punjab & Sindh Bank, State Bank of Mysore and UCO Bank will be members of the consortium. The capital cost of the project at Rs 4,540 crore will be met through a combination of debt and equity in the ratio of 3:1, the company said.

GMR has received coal linkage to meet the entire capacity and has been allocated the Rampia and Dip Side coal block in Orissa, where the development will take place simultaneously with the power project, the company said. It has also signed power purchase agreement with Grid Corporation of Orissa for the sale of about 25% power generated from the project.

The shares of GMR Infrastructure closed 4% higher at Rs 163.80 on BSE.