Business Standard reported that NPCIL-Nalco Power Company Limited a JV between Nalco and NPCIL to set up nuclear plants will raise a term loan of up to INR 1,500 crore over the next three months to fund the construction of power generation capacities.
The JV board met in Mumbai last week to take stock of the progress of the plant’s construction.
Mr BL Bagra director (finance) of Nalco said that “Initially, we are looking for INR 1,000 crore to INR 1,500 crore funding from various banks. We are in talks with the banks and hope to complete the process in the next two to three months.”
According to the JV agreement, Nalco currently holds 26% stake in the company with an option of taking it up to 49%. The rest is with NPCIL. The total project size is INR 11,500 crore with the total debt requirement at INR 7,000 crore.
The JV is exploring other options such as a bond issue or external commercial borrowings as well.
Mr Bagra said that the companies are yet to decide on the quantum of the bond or ECB issue. Since the earnings of the power plants will be in Indian rupees, the two will have to set up a hedging mechanism in case of ECB borrowings.
The civil construction is complete by almost 87% and now the supplies of the equipment etc will be starting. The two are setting up 2x700 MW capacity totaling to 1,400 MW with a deadline of March 2016.
He, however, said that the company is trying to hasten the construction and are aiming to complete by the 2015 end itself.