In the Rs 18,000 crore project, GMR group and CLP propose to contribute Rs 3,000 crore each towards the total equity of Rs 6,000 crore, while the debt of Rs 12,000 crore would be raised from various sources. This apart, GMR group and CLP would make an investment of around Rs 1,200 crore for the development of captive coal mine and the coal production from the same. If needed, GMR group and CLP may explore option of setting up of a separate company for the development of captive coal mine and the coal production.
B Vanchi, director of GMR Energy Ltd, told reporters on Thursday that "CLP and GMR will submit a joint bid for the 4,000 mw Sasan project and co-develop the project in the event of award. Both CLP and GMR will have equal ownership in the project."
Mr Vanchi and Rajiv Mishra, CEO of CLP Power India, admitted that the power ministry's move to offer the payment security mechanism (PSM) , incorporated in the request for qualification, would help in making the projects viable and render them a workable proposition. The PSM comprises letter of credit, escrow account and allowing the developer to sell power to the high tension consumer in the event of default. The duo, however, made it clear that the power ministry should stick to its PSM in the request for proposal (RFP).
GMR, CLP to have equal ownership in the ultra mega power project