Essar Power Hazira attains financial closure

Essar Power Hazira (EPHL) has achieved financial closure for its Rs 1,433-crore multi-fuel based project.

IDFC underwrote the debt of Rs 1,075 crore of EPHL, a special purpose vehicle formed by Essar Power, sources in the two companies said. The 270-Mw power project, expected to be completed by 2012, is funded on a debt-equity of 75:25. The project is part of Essar Power’s plan to raise its power generating capacity to 6,100 Mw from 1,220 Mw.

Essar Power will invest around Rs 20,000 crore to expand its capacity by 2012. Essar earlier achieved financial closure for its 1,200-Mw Salaya and 1,200-Mw Mahan power projects.

The power project at Hazira will have two units of 135 Mw each. The project will be capable of using multi-fuel like corex gas, corex coal, thermal coal or coal fines, a company source said. The electricity generated at the Hazira unit will be supplied to Essar Steel, which is more than doubling its manufacturing capacity.

Source: http://www.business-standard.com/india/news/essar-power-hazira-attains-financial-closure/390953/