CLP India concludes financing arrangements for 1320 MW Jhajjar Power Plant
Total loan amount : Rs. 3900 crores; Transaction lead-arranged by IDBI Bank; Financing arrangements concluded within 8 months of laying the foundation; Deployment of the highly efficient supercritical technology, thus lower carbon emissions; Largest of its kind in CLP's generation portfolio in Asia Pacific and one of India's first supercritical power plants; 90% of its electricity output to the State of Haryana; First unit of the plant is scheduled to be operational in December 2011 and the second unit in May 2012
Tweet-- CLP India today signed financing agreements with a consortium of 15 banks for its 1,320 MW (2x660 MW) power project in Jhajjar, Haryana. Installed with supercritical technology, the project will be the largest of its kind in CLP’s generation portfolio in Asia Pacific and one of India’s first supercritical power plants. Its first unit is scheduled to be commissioned by December 2011 and the second unit by May 2012.
The project has received sanctions amounting to Rs. 3900 crores in loans. The transaction, lead-arranged by IDBI Bank, also involved participation from major banks and financial institutions including Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Infrastructure Development and Finance Corporation (IDFC), India Infrastructure Finance Company (UK) Ltd. (IIFCL), Bank of India, United Bank of India, Allahabad Bank, Dena Bank, Bank of Baroda, State Bank of Patiala, State Bank of Travancore, State Bank of Mysore, Oriental Bank of Commerce, and PTC India Financial Services.
Speaking on the occasion, Mr. Rajiv Mishra, Managing Director, CLP India said, “Our ability to conclude financing arrangements for the Jhajjar Power Plant in just 8 months from its foundation date under such difficult financial market conditions, reflects the inherent strength of CLP and the confidence of the lending community in the Company.”
“Once completed and commissioned in time, Jhajjar project will contribute significantly towards improving the power situation in Haryana State and will also help the state’s employment status by providing jobs for about 250 staff directly and thousands indirectly,” he added.
In line with CLP's Climate Vision 2050 which targets reducing carbon intensity by 75% across its operations in Asia-Pacific by 2050, the Jhajjar plant will be equipped with flue gas desulphurisation equipment that would reduce emissions of sulphur dioxide. Arrangements for a coal contract of 5.2 million tonnes per annum are in place. The project has committed 90% of its electricity output to the State of Haryana.
CLP India is the first foreign company that has won a major power generation project in India, through international competitive bidding that took place in July last year.
Notes to Editor
About CLP India
CLP India is a wholly owned subsidiary of the CLP Group, a HK-listed company and one of the largest investor-owned power businesses in Asia. CLP India is one of the largest foreign investors in the Indian power sector and is responsible for developing CLP's presence in that market. It has a diversified and climate friendly generation portfolio that covers renewable energy, supercritical coal fired, and gas fired generation, amounting to approximately 2,300 MW.
CLP India owns and operates a 655MW gas-fired IPP in Gujarat. It is also one of the largest wind power developers in the country with approximately 350MW of committed wind projects at different stages of implementation. The total committed investment by CLP India is in excess of INR97 billion including the 1320MW coal-fired Jhajjar Power Plant in Haryana.
In line with the CLP Group's commitment to develop 20% of generating capacity from non-carbon emitting energy sources such as renewable energy and nuclear power by 2020, CLP is investing in renewable energy projects in Asia Pacific, focusing on wind, small hydro and biomass, with the emphasis on India, China and Australia.