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East Coast Energy achieves financial closure for Bhavanapadu Phase II

Tuesday, 03 Aug 2010
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East Coast Energy (ECEPL) has mopped up funds for Phase II of the 2,640 MW coal based power plant at Bhanvanapadu in Srikakulam district of Andhra Pradesh.

The company has achieved financial closure with PFC leading the funding along with an 11-bank lenders' consortium. The debt of Rs 5,415 crore sanctioned includes Rs 2,140 crore from PFC, State Bank of India (Rs 1,000 crore), Punjab National Bank (Rs 400 crore), Bank of Baroda (Rs 325 crore), Corporation Bank (Rs 250 crore) and other banks (Rs 1,300 crore). In addition, Rs 1,662 crore of non-fund based limits have been sanctioned by the lenders' consortium.

The company has invested Rs 700 crore in the project after securing all statutory clearances, including from the MoEF and the Andhra Pradesh Pollution Control Board in June 2009 following all established norms, including public hearing.

Currently, the construction is underway and the foundation works are on. Most of the equipment including boilers have also been ordered. About 85 per cent of the power generated is likely to be supplied to Transmission Corporation of Andhra Pradesh.

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