Thursday, August 2, 2007

Jindal's Ratnagiri project attains fin closure

THE ECONOMIC TIMES. Aug, 2007, 2220 hrs IST, PTI

MUMBAI: Sajjan Jindal promoted JSW Energy's Rs 4,500 crore, 1,200 MW coal-based power project at Ratnagiri has completed its financing exercise with funds from 21 financial institutions, led by country's largest lender SBI.

Located at Jaigad in Ratnagiri district of Maharashtra, the imported coal-based power project would be funded in a 3:1 debt-equity ratio, the company said in a release here.

SBI Capital Markets is the lead arranger and advisor for the project.

"The lenders are also derisked from interest rate vagaries as the interest rate is benchmarked to SBI Advance Rate and respective banks' Prime Lending Rate," it said.

JSW Energy would set up four units of 300 MW each. The construction work for the project has already been commenced.

"The boom in the Indian economy has given rise to a huge demand for energy in the future. We plan to cater to this demand through this project," JSW Energy Chairman Sajjan Jindal said.

JSW Energy has tied with a Chinese company for a part of its coal supplies and intends to acquire coal mines in Indonesia and Mozambique to meet the balance requirement.

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