Adani Power may have to face certain land acquisition problems for its Phase I-1,320 MW project at Tiroda in Gujarat, thus affecting the project's viability.

The firm is in the process of identifying and acquiring land for developing the Tiroda power project. If it is unable to get sufficient land for its Tiroda project, the viability and efficiency of the project may be affected.

Presently, the company is implementing two thermal power plants in Gujarat, one in Mundra and another in Tiroda.

The overall debt requirement for the two projects is Rs 22,000 crore. State Bank of India is lending Rs 16,000 crore, while ICICI Bank is arranging Rs 1,200 crore. Power Finance Corporation and Rural Electrification Company are lending Rs 2,600 crore and Rs 1,500 crore respectively.

The company has signed PPAs with Haryana, Maharashtra and Gujarat governments for selling power from the two projects while equipment for the two plants will be sourced from Shanghai Electric, Dong Fang, and Harbin.

The company also proposes to set up a 1,320 MW plant in Rajasthan and another 1,980 MW project at Dahej in Gujarat.

Also See:

Adani Power to raise Rs 2,000 crore by July (27-Jun-09) 

Related Links:
Project profile