The Hindu Business Line : KSK Energy achieves ‘financial closure’ for Chhattisgarh project

The company today announced it has tied up total debt component of Rs. 5,156 crore with a consortium of banks including IDFC, Axis Bank and few others.

Our Bureau

Hyderabad, Sept. 23 KSK Energy Ventures Ltd today announced it has achieved financial closure for its 1800 mw (3x600 mw) Chhattisgarh power plant being set up by its subsidiary Wardha Power Company Ltd.

Of the Rs. 6,874 crore required, the project is being funded by equity component of Rs. 1,718 crore and by closing debt of Rs. 5,156 crore. It had raised Rs.1,245 crore during the company public offer earlier this year. Prior to the IPO, Lehman Brothers had invested Rs. 550 crore picking up 28 per cent equity.

The company today announced it has tied up total debt component of Rs. 5,156 crore with a consortium of banks including IDFC, Axis Bank and few others.

The Director of KSK Energy, Mr. S. Kishore, said “the 1800 mw power project at Chhattisgarh is being set up by the company subsidiary and thus far invested Rs. 500 crore in the project.”

LEHMAN BROTHERS

Asked about the impact of Lehman Brothers happenings on the company, Mr Kishore told Business Line “this will have no impact as the money was already raised before the IPO. We do not need any more funds from them, which was also stated in the prospectus. These shares have a lock in period and we will take a call when it comes in for sale.”

The fuel for the project will come from coal supplies from the Morga-II coal block. An agreement was signed in November 2006 and later formalised with some amendments.

While the company completed the Environmental Impact Assessment study, it is awaiting environmental clearance for the project.

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