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Tata Power may divest part of its stake in Mundra UMPP

Tuesday, 17 Mar 2009
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Tata Power Company is considering divesting part of its equity in Coastal Gujarat Power, which is setting up the 4,000 Mw Mundra UMPP in order to finance capacity additions of 5,660 MW.

The company has sourced around Rs.15,750 crore as debt and requires another Rs.2,300 crore for equity by next year. For this, the company plans to divest stake in Mundra, 1,050 MW Maithon power project and in Tata's telecom companies. At present, the company is just mulling over this option and has reportedly not taken a final decision.

The company announced financial closure of Mundra in April 2008. The Rs.17,000 crore project is being financed through equity of Rs.4,250 crore, external commercial borrowings of $1.8 billion (approx Rs.7,200 crore) and loans of up to Rs.5,550 crore.

Also See:

Sasan, Mundra UMPP to be fully commissioned by 2013 (27-May-08)

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