The consortium of S Kumar's and Siemens AG will hold a controlling stake of 51 per cent which includes Siemens India's 17 per cent stake. The balance will be shared equally between Bayernwerk and VEW Energie.

Of the Rs 505.60 crore equity, S Kumar's alongwith Siemens will contribute Rs 257.80 crore and the balance Rs 247.80 crore will be pooled in by Bayerwerk and VEW.

The project's debt component, which stands at Rs 1076.70 crore, includes foreign currency loans worth Rs 901.70 crore. Power Finance Corporation is funding the project both in foreign currency ($34 million) and Indian rupee (Rs 10 crore).

The project has recently received guarantees from the State Bank of India and counter guaranteehas been given by a consortium of seven banks, including Dena Bank, Canara Bank, Bank of India, Bank of Baroda, Indian Bank, Central Bank and the Punjab National bank for the 17-year loan from Bayersch Vereinsbank.

Besides the SBI guarantee, the Industrial Finance Corporation of India (IFCI) has also provided a $47-million direct guarantee to BV bank.

According to the company, finances for the project have been tied up and with all agreements in place the documentation for the financial closure is in the process.

The project comprising 10 units of 40mw each will be set up in Madhya Pradesh, and is to be implemented by Shree Maheshwar Hydel Power Corporation.

The company will sell the entire power to the state grid. However, transmission and distribution (T&D) will remain with the state electricity boards. As per the power purchase agreement (PPA) the power tariff for 35 years will be at Rs 1.80 per unit. The Madhya Pradesh State Electricity Board (MPSEB) has agreed to make the payment for purchase ofelectricity through an escrow account.

The electric works for the project has been awarded to partner Siemens AG, hydel mechanical work will be carried out by the Asea Brown Boveri, while civil works has been entrusted to Southern Engineering Works. The plant is expected to be commissioned by the 2002.