IDFC picks up 20% in GMR Energy's Orissa power project

By Madhav A Chanchani (VCCircle.com)

The SPV will have a total capital cost of $953 million, the company informed BSE.

GMR Energy promoted thermal power project in Orissa has achieved a financial closure with Infrastructure Development Finance Company (IDFC) Ltd picking up a 20% stake in project.

The project by GMR Energy, a subsidiary of GMR Infrastructure, has also made a loan agreement with a consortium of 13 banks led by IDFC of Rs 3405 crore or $715 million. The project has been implemented through a special purpose vehicle (SPV) called GMR Kamalanga Energy Ltd and will have a total capital cost of Rs 4540 crore or $953 million, the company informed BSE.

The project will have an equity portion of Rs 1,135 crore, of which 20% or Rs 227 crore will be funded by IDFC. The 1050 MW coal-based thermal power project has signed a memorandum of understanding with Orissa government. The engineering, procurement and construction (EPC) contract has been to Shandong Electric Company, China, for $456 million.

GMR is a major private sector player in India's power and energy space. Energy accounts for around 55% of the GMR group revenues. GMR already runs three power plants in the country - a 200 MW diesel power plant in Chennai, a 220 MW barge mounted power plant in Karnataka, and a 370 MW gas-based power project in Andhra Pradesh.

It has signed agreements to supply power to Grid Corporation of Orissa, Haryana Power Corporation and Power Generation Corporation India Ltd.

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