Abhijeet Power to raise $1.2 bln debt by March - source

MUMBAI (Reuters) - Abhijeet Power Ltd, an unlisted utility with an operational capacity of 246 MW, plans to raise 59.2 billion rupees debt for a 1,320 MW coal-fired power project by March, a source close to the development said.

"The funds are tied up, but the final papers are yet to be signed," said the source, who declined to be identified as he is not authorised to speak to the media.

Axis Bank (AXBK.NS), India's third largest private bank by market capitalisation, is the lead banker for the 74 billion rupees power project, he said.

The project in the state of Bihar is being developed by Abhijeet Power's unit, Jas Infrastructure and Power Ltd (JIPL).

Rajesh Tulsiani, Chief Financial Officer, Abhijeet Power, confirmed the development.

Axis Bank (AXBK.NS), Punjab National Bank (PNBK.NS) and UCO Bank (UCBK.NS), both state-run, have underwritten the loan and Jas Infrastructure will sign consortium documents by March, he said.

Other lenders in the consortium include Rural Electrification Corp (RURL.NS), Power Finance Corp (PWFC.NS), Bank of India (BOI.NS), State Bank of Bikaner and Jaipur (SBKB.NS), Oriental Bank of Commerce (ORBC.NS), IIFCL IIFCL.UL, HUDCO HUDCO.UL and Life Insurance Corp of India, the source said.

Jas Infrastructure will fund the project through 20 percent equity and 80 percent debt, the source said.

Abhijeet Power, which has filed for an 13.75 billion rupees initial public offering with the Securities and Exchange Board of India, is also setting up a 1,080 MW coal-fired power project in the state of Jharkhand.

(Reporting by Ketan Bondre; Editing by Rajesh Pandathil)