The Indian unit of London-based KSK Power Venture has secured a total of $3.6 billion in loans for a 3,600-megawatt thermal power project in the state of Chhattisgarh in central India called KSK Mahanadi, the company said in a statement.
The company has appointed Chinese firm Shandong Electric Power Construction to design and build the KSK Mahanadi project while Indian companies including Punj Lloyd, Simplex and Petron Engineering have been offered sub-contracts, according to the company.
The KSK Mahanadi project is being funded as a combination of debt and equity with $2.88 billion of senior and subordinated debt funded by 27 Indian banks and financial institutions and a project equity investment of $720 million, of which state-run Industrial Financial Corporation of India (IFCI) is investing $56 million for a 7.72 percent stake in the project, according to the company.
In a letter to the National Stock Exchange (NSE), the company has stated that land acquisition for the power generation units has been secured and the necessary environment and forest clearance has been obtained by the company.
KSK Power Ventures, a London Stock Exchange-listed power plant developer, currently has four operational power plants in India with a combined capacity of 279 megawatts. The group is currently developing other planned power projects capable of generating an aggregate of 6,475 megawatts of power when fully developed.