Date:20/10/2006 URL: http://www.thehindu.com/2006/10/20/stories/2006102020580400.htm

Karnataka - Bangalore

Financial closure for power project

Special Correspondent

Work on project to start soon

Thermal project to be set up at a cost of Rs. 4,342 crore

1,015-MW plant will use imported coal to generate power

Bangalore: The Lanco Group-promoted Rs. 4,342-crore Nagarjuna power project in Udupi district has achieved financial closure.

"The coal-fired 1,015-MW thermal project, which is to be set up at a cost of Rs. 4,342 crore, is being jointly funded through a mix of debt and equity. A consortium of 14 banks and financial institutions, led by Power Finance Corporation Ltd., has financed the project loan of Rs. 3,474 crore," a company statement said here.

Other lenders to the project include Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank, Dena Bank, Indian Bank, Indian Overseas Bank, IDBI, IIFCL, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank and Union Bank of India. Lanco holds a 74 per cent stake in the project with the rest held by Nagarjuna Power Corporation Ltd.

Work on the project is expected to start soon. The project will use imported coal to generate power.