The Hindu Business Line : Lanco's Mangalore power project achieves financial closure

The project has secured all mandatory clearances from both the Centre and Karnataka. About 90 per cent of the power generated will be supplied to Karnataka, the balance to Punjab

Hyderabad , Oct. 18

The Lanco group-promoted Rs 4,332-crore 1,015-MW coal-based Nagarjuna Power Project to come up at Mangalore in Karnataka has achieved financial closure.

The project is being funded through a combination of debt and equity wherein a consortium of 14 banks and financial institutions, lead by Power Finance Corporation, have provided a loan of Rs 3,474 crore.

According to a statement from Lanco, other lenders of the project are Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank, Dena Bank, Indian Bank, Indian Overseas Bank, IDBI, IIFC, Oriental Bank of Commerce, PNB, Syndicate Bank and the Union Bank of India. In fact, the loan book was oversubscribed.

Power project

While the Lanco group will have a 74 per cent equity stake, the balance would rest with Nagarjuna. The coal-based plant has been backed by 100 per cent imported coal and would be the first such project in the county to be awarded the status of a mega project. And this is also the first project to function on imported coal.

The project has secured all mandatory clearances from both the Centre and Karnataka. About 90 per cent of the power generated will be supplied to Karnataka, the balance to Punjab. The necessary power purchase agreements have been signed.

More Stories on : New Projects | Power | Karnataka

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