The Hindu Business Line : CESC power projects to attain financial closure soon

CESC has begun preparation for financial closure for the two proposed coal-based power projects in West Bengal and Jharkhand of 600 MW (first phase) and 1000 MW respectively after obtaining 70 per cent of mining rights recently for a block at Dumka in Jharkhand which has an estimated geological coal reserves of 220 million tonnes and 100 per cent linkage for Haldia from Coal India.

Depending on the approvals from the Union Government, the major one being environmental clearance, the financial closure for the Haldia project could be ready by the next couple of quarters, a senior company source said here today. "The Jharkhand project financial closure may take little longer," he added. The company's land acquisition exercise - 1,000 acres each at Haldia and Dumka - is at an advanced stage. Incidentally, the power grade coal block allocated to the company is within 10 km radius from the proposed plant site.

The Haldia project, which aims a total capacity of 2000 MW, would be implemented in phases. Apart from these two projects, CESC also taken up 250 MW capacity addition plan at Budge Budge and another 1000 MW project in Orissa.

FUND RAISING

Meanwhile, CESC committee of directors today decided to issue GDRs or some other instrument to raise $150 million for the Haldia and Dumka projects.

"It is part of the simultaneous preparation and the fund raising through this issue is likely by end this financial year to March 30, 2008," the source added.

CESC is also resorting to long-term loans including foreign currency borrowing from IDFC (Rs 124 crore), IDBI (Rs 250 crore), ICICI Bank ($ 85 million), UCO Bank (Rs 200 crore) and PNB (Rs 150 crore).

Real estate venture

CESC Realty - the recently incorporated 100 per cent real estate subsidiary of the company - has taken up its first project in Kolkata.

It is setting up a mall on a 7-lakh sq ft area in the heart of the city. British architectural consultancy firm RTKL has been appointed for designing the signature mall of the venture.