Tata Power Company Ltd (Tata Power) has said that the Maithon Power Ltd (MPL), a 74:26 joint venture between Tata Power and Damodar Valley Corporation (DVC) announced completion of its financing for the 1050 MW coal based thermal power project, b eing set up in Dhanbad District of Jharkhand State. The Project estimated at a cost of Rs 4,450 Crores is being funded on a debt-equity ratio of 70:30. The debt for the project is Rs 3115 Crores and does State Bank of India (SBI) lead being financed by various banks. Taking cognizance of the huge power deficit in the country, the promoters namely Tata Power and DVC have infused equity in excess of the upfront equity requirement as stipulated by the lenders. The promoters have allocated the funds prior to the financia l closure to ensure the project is commissioned in time. The project will comprise of two generating units of which the first unit of 525 MW is to be commissioned by October 2010.
Source: The Hindu Business Line
5th February, 2008