The Rs 763-crore project is now awaiting techno-economic clearance from the Central Authority of India. "We have already identified L&T as the engineering procurement and construction (EPC) contractor for the project. Negotiations for finalising the equity structure with L&T is at an advance stage," Hassan Power Supply Company project coordinator S Ramesh said.

When contacted, L&T officials in Bangalore said the company was keen to pick up an equity stake in the company. But the modalities are still being worked out.

Discussions are also under way with others for taking in the project. India Power Fund of the US has already acquired about 10 per cent stake in the venture, Ramesh added.

It has initiated discussions with IFCI and IDBI for financing the debt component of the project. The debt equity ratio forthe project is 70:30. "We are also looking at foreign debts worth $18 million which will be received in the form of external commercial borrowing and suppliers' credit,'' he said.

Signing the company's power purchase agreement with the Karnataka Electricity Board, KEB chairman KP Singh said: ``The company has mandated JM Financial and Investment Consultancy Services Ltd of Mumbai as financial advisors for the project and also to identify the equity partners. The facility will be ready within the 22 months from the date of financial closure''