Essar Power is raising Rs 1,100 crore from Infrastructure Development Finance
Company (IDFC) for its proposed 270 MW (2x135 MW) power project in Hazira,
Gujarat. The money will come in the form of debt from IDFC.
The project is estimated to cost Rs 1,433 crore. The balance funds are to be
raised through internal accruals of Essar Power.
The transaction is being routed through Essar Power Hazira, a SPV floated by
Essar Power, which is setting up the plant. The project is likely to be capable
of using multi-fuel like corex gas, corex coal, thermal coal or coal fines. The
project is likely to be commissioned in 2012.