Tata Power gets $4.2-bn funds for Mundra project

New Delhi: Tata Power Company Ltd on announced the completion of the signing of financial agreements for the 4,000 MW Ultra Mega Power Project, coming up at Mundra in Gujarat.

The project, which is being set up by a special purpose vehicle named Coastal Gujarat Power Ltd, entails a total cost of Rs 17,000 crore ($4.2 billion), with a large part of it slated to be funded by a consortium of banks including multilateral agencies and Exim banks.

The equity portion is pegged at Rs 4,250 crore, while external commercial borrowings will be $1.8 billion, and rupee loans will be Rs 5,550 crore.

“The terms of debt financing provide us long tenure of loans supporting our competitive bid price assumptions,” said Mr Prasad R. Menon, Managing Director of the company.

The first of the five units, each of 800 MW capacity, will be set up by September 2011 and the entire power plant is expected to be commissioned by 2012-end.

Power will be supplied to five States — Gujarat, Maharashtra, Rajasthan, Haryana and Punjab.

The site preparatory works are in progress and orders for all major equipments have been placed. The company has signed the contract for complete Boiler Island scope on EPC basis with Doosan Heavy Industries and Construction Co Ltd, Korea, and contract for supply of steam turbine generators with Toshiba Corporation.