Financial Daily from THE HINDU group of publications
Saturday, Sep 25, 2004

Cross Currency

Group Sites

Corporate - Announcements

Torrent Power's project achieves financial closure

Our Bureau

Ahmedabad , Sept. 24

TORRENT Power Generation Ltd has achieved financial closure for its proposed 1,095-MW plant at Surat with an Infrastructure Development Finance Company (IDFC)-led consortium agreeing to provide Rs 2,167 crore for the project.

The total cost of the gas-based combined cycle power plant has been estimated at Rs 3,096 crore.

While the Ahmedabad-based Torrent group will chip in with about Rs 557 crore as 60 per cent of the Rs 929-crore equity, the rest will be offered to the project's EPC (engineering, procurement and construction) contractors and other suppliers.

The Torrent group has already invested Rs 264 crore in Torrent Group Power Generation (TGPL), the special purpose vehicle for the power project.

The plant is expected to commence production by 2007. The consortium of lenders comprises six financial institutions.

The contributions are IDFC Rs 400 crore, Power Finance Corporation (Rs 600 crore), IDBI, UCO Bank and Canara Bank (Rs 300 crore each) and Punjab National Bank (Rs 267 crore), Torrent executives told Business Line on Thursday.

Power generated from the project will be supplied to Ahmedabad Electricity Company and Surat Electricity Company, the group's distribution entities in Ahmedabad and Surat.

While the two group companies will take up 75 per cent of the power generated based on their current purchases from the Gujarat Electricity Board and the demand projections, the rest will be offered to Power Trading Corporation (PTC) for its national grid.

TGPL has signed an agreement with PTC in this regard, the executives said.

The project envisages use of advanced class gas turbines with high thermal efficiency in three blocks of 365 MW each.

The Surat plant will benefit from the proximity of major pipelines and the Hazira liquefied natural gas terminal, which will provide fuel for the power plant, the executives said.

More Stories on : Announcements | Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Torrent Power's project achieves financial closure

Sandvik Asia establishes training academy for rock drilling activities
Siemens bags order worth euro 49 m from Delhi Metro
Maruti joint MD resigns
Microverse bags plant order
Equity offer to IDBI
Greaves Cotton pvt placement
SC to hear Zee plea against BCCI decision on Monday
It's easier to change ads than toothpowders
Dredging Corpn wants tax sops restored — `Treat dredgers as ships'
Sun Pharma to buy three brands from US co for $5.4 m
IBP merger by December: IOC
Faber India lines up major expansion
It's business as usual for BIFR despite uncertainty
Spic Petro revival plan: Lenders to meet on Oct 11
Kaya Skin plans southern foray thru Bangalore
L&T aims to become an Indian MNC

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line