East Coast Energy ties up funds for 1,320-MW plant - 'All statutory clearances secured for the project'

East Coast Energy Ltd, currently implementing 1,320 MW Phase-I of the 2,640 MW thermal plant at Bhanvanapadu in Srikakulam district, has achieved financial closure with PFC leading the funding along with an 11-bank lenders' consortium.

The Rs 7,000-crore first phase of the greenfield project is being funded with 75:25 debt equity ratio. The debt of Rs 5,415 crore sanctioned includes Rs 2,140 crore from Power Finance Corporation (PFC), SBI (Rs.1,000 crore), PNB (Rs 400 crore), Bank of Baroda (Rs. 325 crore), Corporation Bank (Rs. 250 crore) and other banks (Rs 1,300 crore). In addition, Rs1,662 crore of non-fund based limits have been sanctioned by the lenders' consortium.

“We have invested Rs 700 crore in the project after securing all statutory clearances, including from the Ministry of Environment and Forests and Andhra Pradesh Pollution Control Board (APPCB) in June 2009 following all established norms, including public hearing,” Mr T.V. Krishna, Managing Director of East Coast Energy, said.

About 1,800 locals have been employed in the project coming up on a 1,985 acre site acquired from the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The entire land is owned by the Government, which was transferred to APIIC before we acquired it from them. The site is located about 4 km from Naupada Swamp, Mr Krishna told .“Some environmentalists had taken up the issue to the High Court, which recently ruled it in the company's favour. Another petition is with the appellate authority, which will be decided shortly,” he said.

The construction at the site is on and the foundation works are underway. Most of the equipment including boilers have also been ordered. About 85 per cent of the power generated will be supplied to State Electricity Boards, he said.