The Hindu : Powerlinks achieves financial closure

Online edition of India's National Newspaper
Saturday, Jan 10, 2004

Business

Business

Powerlinks achieves financial closure

By Our Staff Correspondent

MUMBAI, JAN. 9. Powerlinks, the joint venture of Tata Power Company (TPC) and the Power Grid Corporation of India Ltd.(Powergrid), has achieved financial closure for its 400 kV Tala Transmission project.

The Tala project is the country's first inter-State transmission project with private sector participation. The Tala Transmission project will have a total investment of about Rs. 1,120 crores and a debt-equity ratio of 70:30. The lenders will finance 70 per cent of the estimate project cost in the form of a term loan on non-recourse basis. The Powergrid will hold a 49 per cent stake in the venture and TPC will hold the remaining stake. The Tala-Delhi Transmission project, spanning over 1,200 km of 400 kV transmission lines from Bhutan to Delhi will facilitate evacuation of power from the 1,020 MW Tala Hydro-Electric project in Bhutan and carry surplus power from the Eastern grid to the power deficit Northern grid.

R. P. Singh, Chairman and Managing Director, Powergrid, said, "Powergrid's maiden joint venture transmission line project with Tata Power is the first of its kind in the country."

F. A. Vandrevala, Managing Director, TPC, said, "We are glad to have successfully concluded the financial closure within a short period."

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