The Blackstone Group is likely to acquire a 12 per cent stake in Monnet Ispat's greenfield power plant in Orissa at an investment of Rs 275 crore.

The 1,050 MW power plant being set up by Monnet Power, a subsidiary of Monnet Ispat, is expected to cost Rs 5,092 crore. It will be funded through a mix of equity capital and debt.

According to sources, Blackstone is evaluating the proposal.

Of the total cost of Rs 5,092 crore, Monnet Ispat is likely to invest Rs 1,273 crore and the balance will be raised through debt. The investment from Blackstone is being pursued for the equity component.

Of the debt component of Rs 3,819 crore, IDFC, with a commitment of Rs 400 crore, is leading the 21-bank consortium that will fund it. Other banks that are part of the consortium are Punjab National Bank, Oriental Bank of Commerce, Central Bank of India, Bank of Baroda, State Bank of Hyderabad, State Bank of Mysore and State Bank of Patiala.

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