ET reported that Hyderabad based GVK Power & Infrastructure is in talks with lenders to raise additional INR 1200 crore for the Alaknanda hydel power project.

The company will also be pumping in an additional INR 300 crore equity according to company sources familiar with the development.

GVK is in talks with existing lenders and some banks to raise fresh debt for the delayed project. The existing lenders include a consortium of eight to ten banks spearheded by Punjab National bank.

The project cost in the mean time has shot up by INR 1500 crore from INR 2800 crore to INR 4300 crore.

The Alaknanda project is being built on the river Alaknanda near Srinagar town in Pauri district of Uttarakhand.

The government has suspended the construction work of the 330 MWAlaknanda hydel project on the issue of submergence of the Dhari Devi temple loacated on the site in 2010.

(Sourced from ET)