JSW Energy, Ratnagiri (JSWERL) has achieved financial closure of its 1,200 MW (4x300 MW) imported coal based thermal power plant at Jaigad in Ratnagiri district of Maharashtra.

A consortium of 21 banks and financial institutions led by State Bank of India will provide the entire debt portion (Rs.3,375 crore) of the Rs.4,500 crore project. SBI Capital Markets (SBI Caps) is the lead arranger and advisor for the project. The project has a debt-equity ratio of 3:1 (rupee term loan of Rs.3,375 crore for 14.5 years and equity of Rs.1,125 crore).

The company has tied up part of its coal requirement with a Chinese company and intends to acquire coal mines in Indonesia and Mozambique to meet the balance requirement. Shanghai Electric Corporation has bagged the boiler turbine and generator contract for the project. All major clearances for the project have been obtained.

A captive port at Jaigad for import and transportation of coal has also been proposed.