Sterlite Power announced the successful refinancing of its project loan for the recently commissioned Khargone power transmission project in Madhya Pradesh.
With this transaction, Sterlite Power has achieved a reduction of almost 400 basis points in the interest cost to be incurred by the project on a per annum basis, demonstrating the considerably improved risk profile of the project post achievement of CoD (Date of Commercial Operation).
The new financing secured from Aseem Infrastructure Finance Ltd (Rs.525 crore), NIIF Infrastructure Finance Ltd (Rs.450 crore) and Aditya Birla Finance Ltd (Rs.225 crore),will enable prepayment of the existing project loan of around Rs.1,100 crore.
The refinancing of this critical inter-state transmission project also highlights the keen interest of financial institutions in funding power transmission projects with stable long-term cash flows, Sterlite Power said.
According to Pratik Agarwal, Managing Director, Sterlite Power, “This transaction aligns well with our strategy and will provide greater financial headroom to the business in the coming years. It is a testimony of the continued trust reposed on us by the banking and investor community for our ability to deliver challenging projects on time, while delivering strong returns.”
Final element commissioned
The Khargone transmission scheme, with an estimated cost of Rs.1,662 crore, will help evacuation of electricity from NTPC’s 1,320-mw Khargone power plant in Madhya Pradesh.
Evacuation will be done first to the 765kV Khandwa substation, for further downstream transmission to across Madhya Pradesh, Maharashtra, Chhattisgarh, Gujarat, Goa, Dadra & Nagar Haveli and Daman & Diu.
The sixth and final element, commissioned in December 2021, was the 765kV double-circuit line from Khandwa Pool to Dhule, running about 383 ckm The first five elements, listed below, were fully commissioned during the period February 2018 to April 2020. (Read more)
Featured photograph (source: Sterlite Power) shows a project element of the Khargone transmission scheme.
