Mahanadi power project busine
20 September 2010
KSK Power Ventur plc
("KSKPV" )
Mahanadi power project business update
KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, is pleased to announce that its subsidiary, KSK Energy ventures Limited ("KSKEV"), the equity shares of which are listed and traded on the National Stock Exchange of India Limited ("NSE") and the Bombay Stock Exchange Limited ("BSE"), has filed with the NSE and BSE today, the following business update with respect to the 3600 MW KSK Mahanadi power project.
BUSINESS UPDATE
3600 MW Thermal Power Project, Chhattisgarh
KSK Energy Ventures Limited ("KSK" or "the Company") is pleased to report the continual progress on the 3600 MW KSK Mahanadi power project in the state of Chhattisgarh and in that context providing the following update:
Debt and equity funding secured
The company has completed the tying up and has secured the total capital outlay for the project, which is estimated be US$ 3.6 bn (INR 161,900m). This is initially being funded as a combination of debt and equity, being:
§ US$2.88 bn (Rs 129,520m) of Senior and Subordinate debt ( being funded by 27 Indian banks and financial institutions); and
§ Project equity investment of US$720 m (Rs 32,380m), of which, we are pleased to announce IFCI Limited (a large financial institution in India) has agreed to invest US$56 m (Rs 2,500m), whereupon they will hold 7.72% of the equity in KSK Mahanadi.
With the above arrangements in place, the entire equity and debt funds required for the project is fully tied up
Commencement of civil works
The land acquisition for the proposed power generation units has been secured. In addition, environmental clearance has been obtained from Ministry of Environment and Forest (MoEF). This has allowed the Chhattisgarh Environment Conservation Board (CECB) to issue its 'Consent for Establishment'.
As a result, civil works have now started at the site. Currently, civil works with respect to boilers, electro static precipitators, the chimney, and excavation works with respect to the main power house building, Turbine Generator foundations, switchyard, coal handling plant, cooling towers and raw water reservoir are underway
Shipment of material supplies
M/s Shandong Electric Power Construction Corporation (SEPCO), the largest EPC contractor from China is engaged in the design, supply and project engineering, construction, commissioning & testing services for the site. SEPCO has begun the shipment of material supplies to the site. Further SEPCO has informed KSK that orders for 79 packages have so far been placed by them. They have also entered into sub contracts for construction and other activities with various Indian sub contractors, such as Simplex, Punj Lloyd, and Petron Engineering, SEW Infrastructure amongst many others.
Transmission and Evacuation
KSK Mahanadi has signed a Bulk Power Transmission Agreement with the Power Grid Corporation of India Limited (PGCIL). The necessary land, to setup the requisite pooling facility (400/765 kV), for evacuation of power generated and transmission to consumers, has been sanctioned to PGCIL.
Other Infrastructure
The company has awarded contracts for the development and construction of the necessary water infrastructure. Discussions are continuing to finalize the awards for the railway transportation infrastructure to support the power project.
Outlook
The Company anticipates that the current year will witness substantial progress by the respective companies involved in the KSK Mahanadi power project and associated infrastructure.
- Ends -
For further information, please contact:
|
KSK Power Ventur plc Mr. S. Kishore, Executive Director Mr. K. A. Sastry, Executive Director
|
+91 40 2355 9922 |
|
Arden Partners plc Richard Day / Adrian Trimmings
|
+44 (0)20 7614 5900 |
|
Financial Dynamics Jonathan Brill / Billy Clegg / Ed Westropp
|
+44(0)20 7831 3113 |
This information is provided by RNS
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund