Gayatri Energy Ventures, part of Gayatri Projects, is in the process of raising funds for the Rs 6,800-crore 1,320 MW coal based coastal power plant proposed near Krishnapatnam in Andhra Pradesh.

The project with a debt-equity ratio of 75:25, has received nod for nearly 80 per cent of the debt component from banks and financial institutions, including REC, PFC and Canara Bank. The debt component of Rs 5,100 crore is expected to be tied by the end of current financial year.

As per sources, all necessary clearances for the project, including environmental have been secured. The Andhra Pradesh Government has allotted 1,400 acre and the necessary formalities have also been completed.

The coal linkage for the project has been secured from Mahanadi Coal Fields. Once the work commences by June 2010, the company expects to commission the project within 39 months.