September 08, 2008

JSW Energy achieves financial closure for Barmar power plant

It is reported that JSW Energy promoted Raj West Power Limited has achieved financial closure for its 1,000 MW lignite based power plant at Barmer in Rajasthan. The proposed INR 5,000 crore projects would be financed in a debt equity ratio of 3:1.

As per report, a consortium of 12 banks and financial institutions is participating in providing a rupee term loan totaling INR 3,750 crore with JSW Energy committing to provide the entire 25% equity requirement of INR 1,250 crore.

The deal has been structured and syndicated by ICICI Bank as the sole financial advisors & arrangers to Raj West Power Limited for the transaction. The total debt requirement has been financed by ICICI Bank, Rural Electrification Corporation, India Infrastructure Finance Co, Punjab National Bank, Bank of India, Canara Bank, Life Insurance Corporation of India, Infrastructure Development Finance Co, IDBI, United Bank of India, Indian Bank and Vijaya Bank.

The lignite for the power project will be procured from Barmer Lignite Mining Co, a JV between Rajasthan State Minerals & Mining Co holding 51% and RWPL 49%. It has already entered into a power purchase agreement for sale of power on long term basis. The power generated will be sold to 3 distribution companies in Rajasthan, Ajmer Vidyut Vitran Nigam, Jaipur Vidyut Vitran Nigam and Jodhpur Vidyut Vitran Nigam.