Infrastructure major Lanco Infratech has achieved financial closure for the first phase of its 2,640 mw Babandh thermal power project in Dhenkanal district of Orissa.
The first phase, of 1,320 mw (2X660) capacity, will come up in 48 months from now. It is estimated to cost Rs6,930 crore, which would be financed with a debt of Rs5,544 crore and equity of Rs1,386 crore.
A consortium of 14 banks and financial institutions with ICICI Bank in the lead is providing the debt required for the project, the company said.
Sources said the project has already achieved coal linkage and the entire land of about 2,000 acres required for the project is in its possession. The company has even signed a power purchase agreement (PPA) for 25% of the generation and the PPA has been approved by the Orissa Electricity Regulatory Commission. Lanco has been operating power generation units in various parts of the country and has an installed capacity of about 2,082 mw. It has been working on a plan to ramp up the capacity to about 4,000 mw by the year-end and 9,300 mw by 2014. Babandh is its first project in Orissa, which has about 30% of the country’s coal reserves.
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