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Our Bureau

New Delhi , April 19

The newly formed India Infrastructure Finance Company (IIFCL) and Infrastructure Leasing and Financial Services (IL&FS) have signed a collaboration agreement to develop and finance generation and transmission projects in the power sector.

"IL&FS has been at work to develop several power projects worth 6,400 MW capacity in four States, while additional projects in three more States are in the pipeline," Mr D.K. Mittal, Chief Executive of the company, has told mediapersons.

Projects on hand

The initial projects identified are namely Oil and Natural Gas Corporation's 1,100 MW gas-based power project in Tripura (Rs 3,500 crore), 630 km transmission linkage for this project from Tripura to Bongaigaon (Rs 2,000 crore), the 1,500 MW Teesta-III hydro power project in Sikkim (Rs 5,500 crore), a 2,000 MW gas-based power project in Andhra Pradesh (Rs 6,000 crore) and 1,600 MW Krishnapatnam imported coal project (Rs 5,500 crore).

To reduce the risks generally associated with independent power projects, IL&FS would complete the project development activities before the private sector entities are selected for project implementation, Mr Mittal said.

IIFCL, which has been promoted by the Centre to provide long-term finance to infrastructure projects directly as well as to banks and financial institutions for loans of a tenor exceeding 10 years, will be the lead fund arranger for these projects.

"We will invest 20 per cent of the total cost of these projects (about Rs 7,000 crore) by way of both equity and debt," the IIFCL Chairman Mr S.S. Kohli said.

More Stories on : Power | Financial Institutions

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