From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Jul 14: A loan agreement to the tune of Rs 5,500 crore was signed by the Karnataka Power Corporation Ltd and the Central undertaking Power Finance Corporation Ltd for implementing a 2 x 800 mw coal-fired super critical thermal power plant at Yermaraus in Raichur district.

The project is being implemented by a joint venture company, Raichur Power Corporation Ltd, formed by Karnataka Power Corporation Limited and Bharat Heavy Electricals Limited.

The estimated cost of the ambitious project is Rs. 9,015 crore with a debt portion of Rs. 7,212 crorre (80 per cent) and equity portion of Rs. 1803 crore (20 per cent), said an official press note.

The Power Finance Corporation Limited has sanctioned term loan of Rs. 5500 crore for the project. The balance Rs. 1712 crore is sanctioned by commercial banks.

For the equity portion, the Karnataka Power Corporation Limited is investing 50 per cent (Rs. 902 crore), BHEL – Rs. 469 crore (26 per cent) and Industrial Finance Corporation of India (IFCI) – Rs 432 crore – totalling Rs. 1803 crore.

The project is expected to be commissioned in 2014-15.

Karnataka’s Energy Minister Shobha Karandlaje, KPCL Managing Director Yogendra Tripathi, Power Finance Corporation Limited Director Rajeev Sharma and other officials were present during the signing of the loan agreement.