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Torrent Power's project achieves financial closure

Our Bureau

Ahmedabad , Sept. 24

TORRENT Power Generation Ltd has achieved financial closure for its proposed 1,095-MW plant at Surat with an Infrastructure Development Finance Company (IDFC)-led consortium agreeing to provide Rs 2,167 crore for the project.

The total cost of the gas-based combined cycle power plant has been estimated at Rs 3,096 crore.

While the Ahmedabad-based Torrent group will chip in with about Rs 557 crore as 60 per cent of the Rs 929-crore equity, the rest will be offered to the project's EPC (engineering, procurement and construction) contractors and other suppliers.

The Torrent group has already invested Rs 264 crore in Torrent Group Power Generation (TGPL), the special purpose vehicle for the power project.

The plant is expected to commence production by 2007. The consortium of lenders comprises six financial institutions.

The contributions are IDFC Rs 400 crore, Power Finance Corporation (Rs 600 crore), IDBI, UCO Bank and Canara Bank (Rs 300 crore each) and Punjab National Bank (Rs 267 crore), Torrent executives told Business Line on Thursday.

Power generated from the project will be supplied to Ahmedabad Electricity Company and Surat Electricity Company, the group's distribution entities in Ahmedabad and Surat.

While the two group companies will take up 75 per cent of the power generated based on their current purchases from the Gujarat Electricity Board and the demand projections, the rest will be offered to Power Trading Corporation (PTC) for its national grid.

TGPL has signed an agreement with PTC in this regard, the executives said.

The project envisages use of advanced class gas turbines with high thermal efficiency in three blocks of 365 MW each.

The Surat plant will benefit from the proximity of major pipelines and the Hazira liquefied natural gas terminal, which will provide fuel for the power plant, the executives said.

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