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BRIEF-OPGC gets additional equity for its expansion project
March 22, 2017 / 12:52 PM / in 9 months

BRIEF-OPGC gets additional equity for its expansion project

March 22 (Reuters) - OPGC:

* OPGC gets additional equity for its expansion project

* Odisha government, AES infused additional equity of 4.85 billion rupees in to OPGC in proportion of their present holding of 51:49

* Funding of expansion project along with development of mines with an estimated total cost of inr 115.47 billion is based on a debt to equity ratio of 75:25 Source text: [The Govt. of Odisha and its strategic partner AES have reinforced their commitment for OPGC expansion by infusion of additional equity of Rs.485Crore in to OPGC in proportion of their present holding of 51:49. This has demonstrated a positive move by both of the shareholders in line with the broader understanding of mutual cooperation for successful implementation of the ongoing OPGC expansion project of 2X660MW super critical units at Ib Thermal Power Station. This infusion has come as a part of the equity requirement for the financial year 2016-17 as agreed by both of the shareholders in line with the schedule of drawal envisaged in the financing agreements entered with the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).The State Govt. has released Rs247.35 Crore in favour of OPGC as equity contribution in proportion to its share of 51% whereas AES has brought its share of additional equity of 35.39 million USD as FDI equivalent of Rs. 237.65 Crore proportionate to 49% stake thus raising the paid up equity share capital of OPGC to about Rs.975/-Crore from the existing equity base of Rs.490 Crore. As per the financing schedule, the State Govt. and AES are required to bring together further equity about Rs.1156Crore in the Financial Year 2017-18 out of which AES’s share of Rs584Cr. is expected to come in as FDI in forex. The State Government so far has been extending its cooperation in obtaining permits, licences, fuel security arrangement and land acquisitions etc. for the above expansion project the construction of which was flagged off by the Hon’ble Chief Minister of Odisha in February 2014. The above two units of power plant which are under construction are scheduled for going into commercial operation in the year 2018.The administrative support and commitment of the State Government for the OPGC expansion programme combined with the management and technical support of the strategic partner AES, OPGC is poised to go a long way in making the state self reliant in power and play the role of a catalyst of industrial growth of the state. It is pertinent to note that the funding of the above expansion project along with development of mines with an estimated total cost of Rs.11,547Crore is based on a Debt to Equity ratio of 75:25]

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