GVK Power and Infrastructure has raised Rs 225 crore through debt for its coal mining projects in Tokisud, Jharkhand.

The Rs 300-crore project being operated through a SPV - GVK Coal (Tokisud) Company - is to be funded by equity of Rs 75 crore and debt of Rs 225 crore. The debt portion was syndicated by the IDBI Bank and has been funded by a consortium of seven banks.

The Tokisud mine is estimated to have total mineable reserves of about 52 million tonne. The total area required for the project is about 900 acre, and the company has so far acquired about 500 acre.

The coal from the mine is likely to be supplied to GVK's 540 MW thermal power project at Goindwal Sahib in Uttarakhand. The SPV has already signed a coal supply agreement in this regard. It is likely to commence production in 26 months from the date of the financial closure.

Also, GVK Power has signed a contract with the Indian Railways for coal transportation from the mines to the Goindwal Sahib.

Also See:

GVK Power acquires stake in GVK Gautami (30-March-10)

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