Age on Sunday
OGDEN BACKS OUT OF POWER PROJECT DEAL
Mumbai, Dec. 13
S Kumars-promoted Shree Maheshwar Hydel Power Corporation Ltd is scouting for a new partner to pick-up a 49 per cent stake, consequent to us energy major Ogden Energy Group’s “in-principle” exit from the Rs 3,000 crores power project in Madhya Pradesh.
“In an informal communication to us, Ogden has said that it was against their global practice to provide upfront equity and resort to non-recourse funding as demanded by Indian financial institutions”, smhpcl sources said.
Since the schedule of equity infusion from Ogden did not match the fis and banks’ expections, smhpcl was, therefore, exploring alternative means of finance “including a new partner, since Ogden will sooner or later formally offload its 49 per cent stake in the 400 mw project”, they said.
The consortium of fis and banks financing the project are Industrial Finance Corporation of India, Industrial Development Bank of India, SBI, PFC, Bank of India, Bank of Baroda, Punjab National Bank and Central Bank of India through a mix of rupee term loans, foreign currency loans and guarantees, they said.
The project, to come up at Mandaleshwar, 100 km south of Indore, and entrusted to the s kumar’s Group in 1993, would have a Rs 1,298 crores debt component while the remaining Rs 1,881 crores would come by way of equity, sources said.(PTI)