Tata Power refinances loan for Mundra UMPP

Tata Power on Tuesday said it refinanced loans worth Rs 3,864 crore for its 4,000-MW Mundra ultra mega power project (UMPP) in Gujarat, which will help the plant save around Rs 77 crore a year in interest cost.

The Mundra project is being implemented by Coastal Gujarat Power (CGPL), a wholly owned subsidiary of Tata Power.

“Coastal Gujarat Power Ltd, a 100 per cent subsidiary of the company, has refinanced its outstanding rupee loans. The refinancing has been done under an RBI circular dated 7th August 2014 by which a minimum of 25 per cent of the outstanding loans has to be refinanced through new lenders,” the company said in a filing to the BSE.

“The refinancing scheme will help in extending the tenure of the rupee facility and also help in reducing the interest cost of CGPL. The total interest savings will be 2 per cent (Rs 77 crore per annum) on Rs 3,864 crore of refinancing,” it said.

The loan agreement was executed yesterday, it said.

Axis Bank has joined as a new lender to the existing rupee lenders consortium, pursuant to the refinancing exercise, in line with the regulations, the filing said.

The consortium is led by the State Bank of India. Other banks are India Infrastructure Finance Company Ltd, Oriental Bank of Commerce, Vijaya Bank, State Bank of Hyderabad, State Bank of Bikaner, State Bank of Travancore, and Axis Bank. — PTI

The Hindu