September 07, 2008

TATA Power achieves financial closure of Mundra UMPP

TATA Power has announced the financial closure of its 4,000 MW ultra mega power project at Mundra in Gujarat. The financial agreements have been signed under the company’s special purpose vehicle Coastal Gujarat Power. The project cost is estimated at INR 17,000 crore.

Mr Prasad R Menon MD of TATA Power said “The signing of the financing agreements for Mundra UMPP is an important milestone. The terms of debt financing provides us long tenure of loans, supporting our competitive bid price assumptions.”

The project is financed through equity of INR 4,250 crore, external commercial borrowings of around USD 1.8 billion (INR 7,200 crore) and rupee loans of up to INR 5,550 crore. SBI Caps are the financial advisors and mandated lead arranger for rupee loans.

The first of the five units is expected to be commissioned by September 2011 and the entire plant is expected to be commissioned by end of 2012.