The 1,000 MW Karcham Wangtoo hydropower project of Jaiprakash Associates is headed for financial closure. The Rs.5,500 crore project is coming up in Himachal Pradesh, and is being financed on a 70:30 debt equity ratio with a debt component of Rs.4,100 crore. Loans are being sourced from a lending consortium led by ICICI.

Most of the clearances are in place and the company is in the final stages of negotiations for loans. The financial closure is expected "very soon", it is learnt. Commercial power generation from the project is expected by May 2011. The project is being implemented by a wholly-owned subsidiary, Jaypee Karcham Hydro Co Ltd.

Sale of power: Out of the 1,000 MW of capacity, power generation corresponding to 120 MW would be given free to the Himachal Pradesh state electricity board. Jaiprakash's cement units in Rewa (Madhya Pradesh) and a proposed 3 million tpa unit in Himachal Pradesh will take up 180 MW. The remaining power (corresponding to 700 MW of capacity) would be sold to Power Trading Corporation.

Other projects: Jaiprakash Hydro Power Ltd, another group company, is already operating the 300 MW Baspa (II) hydropower project in Himachal Pradesh. The company had recently floated an IPO that has brought down promoters' holding in the company to 63.34 per cent.

Jaiprakash Power Ventures is implementing the 400 MW Vishnuprayag hydropower project in Uttaranchal. The Rs.571 crore project is running ahead of schedule and is likely to be commissioned by March 2006 as against December 2006 envisaged earlier.

Also See:

Jaypee Group to invest Rs.900 crore in cement expansion (16-Nov-05)

Jaypee Group to enter thermal power (04-Jul-05)