Our Bureau

New Delhi , Nov. 28

JAIPRAKASH Associates Ltd aims to achieve financial closure for its Rs 5,500-crore 1,000-MW Karcham Wangtoo hydel power project at Kinnaur in Himachal Pradesh. The project is being implemented with a debt equity ratio of 70:30.

The Managing Director, Mr Manoj Gaur, told Business Line that most of the clearances have already been received and the company is in the final stages of negotiations and expects financial closure before the year-end. "The project has a debt component of around Rs 4,100 crore. A ICICI-led consortium is working on the project and I expect everything would be finalised very soon," said Mr Gaur.

The company will have to give 12 per cent of the 1,000 MW power generated free to the State electricity board as it is for all hydel projects.

Out of the remaining 880 MW, the company's cement units in Rewa and Himachal Pradesh will take up 180 MW, and for 700 MW the company has tied up with Power Trading Corporation (PTC), Mr Gaur said. He added that commercial production would start in May 2011.

Jaiprakash Associates is implementing the project through is wholly owned subsidiary Jaypee Karcham Hydro Company Ltd. Earlier, the company had implemented the 300-MW Bapsa II through Jaiprakash Hydro Power Ltd, which started as a wholly owned subsidiary and later the promoters brought down their stake to 63.34 per cent through an IPO.

The company is also implementing a 400-MW hydel project through Jaiprakash Power Ventures Ltd at a cost of Rs 571 crore at Vishnuprayag.

Mr Garg said the company has captured contracts for 54 per cent of all new hydro power projects that are coming up under the Tenth Plan and its huge experience in setting up hydel power plants is critical in the company's own plans.

The company's 400-MW Vishnuprayag project is running ahead of schedule and will be commissioned by March next year instead of December 2006, resulting in a saving of almost Rs 100 crore, he said.

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