Financial close complete for India’s 330-MW Shrinagar

Alaknanda Hydro Power Co. Ltd. announced financial closure for the 20.69 billion rupee (US$514.6 million), 330-MW Shrinagar hydroelectric project to be built on India’s Alaknanda River.

Alaknanda, a subsidiary of GVK Group, said August 6 the project will be funded through a debt-equity ratio of 80:20. The debt component of 16.55 billion rupees (US$411.7 million) is funded by 14.94 billion rupees (US$371.6 million) and US$40 million. Equity of the project will be 4.14 billion rupees (US$102.9 million).

Debt was syndicated by Axis Bank (formerly UTI Bank), the security trustee. Punjab National Bank is lender’s agent. Institutions participating in the consortium include Andhra Bank, Central Bank of India, Dena Bank, Indian Bank, India Infrastructure Finance Co. Ltd., and Industrial Development Bank of India Ltd.

Alaknanda signed an implementation agreement last year with the governments of Uttar Pradesh and Uttarakhand states. Under the power purchase agreement, Uttar Pradesh Power Corp. Ltd. is to buy 88 percent of Shrinagar’s power. The remaining 12 percent is to be supplied free of cost to Uttarakhand.

Bharat Heavy Electricals Ltd. received an electro-mechanical works contract. In April, Alaknanda awarded a contract to SMEC International of Australia and SMEC India to provide detailed engineering services. (HNN 4/18/07)

The project includes a 90-meter-tall, 248-meter-long concrete gravity dam; tunnel; power channel; penstocks; and powerhouse with four 82.5-MW units. The run-of-river project is to go on line in early 2011 in Uttarakhand.

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