Business

Wardha project: KSK ties up finance

HYDERABAD: KSK Energy Ventures has completed financial tie-ups for its 1,800 MW power project being implemented by its wholly-owned subsidiary, Wardha Power Company Pvt. Ltd., in Chhattisgarh.

S. Kishore, Director of the company, said here on Tuesday that the company had invested Rs. 500 crore on the project. The total cost of the project was Rs. 6,874 crore to be funded by equity (Rs. 1,718 crore) and debt (Rs. 5,156 crore). An equity of Rs. 1,245 crore had been fully raised during the company’s recently-concluded initial public offering.

The debt of Rs. 5,156 crore was financially fully tied up with a host of banks and financial institutions in consortium.

The fuel for the project, coal, will be supplied from the Morga-II coal block of Gujarat Mineral Development Corporation.

To a question, Mr. Kishore said Lehmann Brothers invested Rs. 560 crore, which constituted 28 per cent in KSK Energy Ventures, which was under lock-in till July 2009. Additionally, KSK Power Ventur, which owns 55.25 per cent of KSK Energy Ventures, was listed on the London Stock Exchange and would be not only keen but ably backed by its large institutional shareholders and contractual rights to pick-up the shareholding of Lehman Brothers, if it came up for sale after the expiry of the lock-in period, he said.

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