Power Link Shortlists Five For Loans

Mumbai, Nov 16: | Updated: Nov 17 2003, 05:30am hrs
The Power Link Transmission Ltd (PLTL), earlier Tala Delhi Transmission Company Ltd, has shortlisted the International Finance Corporation (IFC), Asian Development Bank (ADB), State Bank of India (SBI), Industrial Development Finance Corporation (IDFC) and UTI Bank for seeking loan of Rs 855 crore. These lenders have offered to lend a total of Rs 1,373 crore against a debt requirement of Rs 855 crore.

The PLTL, which is a joint venture between Tata Power Company (PTC) and the state-run PowerGrid Corporation, is setting up a Tala transmission line from Siliguri to Mandaula at a cost of Rs 1,200 crore.

The project would be financed with a 70:30 debt ratio. TPCs equity would be Rs 186.7 crore (51 per cent) and the PowerGrid Corporation would conntribute Rs 179.3 crore (49 per cent). TPC and PowerGrid Corporation had inked the shareholders agreement on July 4 this year for this project. PLTL board, which met on November 11 at Mumbai, discussed matter relating to debt requirement.

TPC sources told FE that IFC has offered to lend Rs 341 crore, IDFC (Rs 300 crore), ADB (Rs 282 crore), SBI (Rs 250 crore) and UTI (Rs 200 crore).

The interest rate is around eight per cent. Based on depreciation rates, the PLTLs financing needs would be for a tenor of 16 years comprising three years of construction and 13 years of repayment. TPC sources hoped that PLTL would be in a position to achieve financial closure by end of December.

PLTL has received the transmission license under the Provision 14 of the Electricity Act (EA) 2003 from the Central Electricity Regulatory Commission (CERC) on November 13. In view of CERCs directives, the company in the past had published notices as required under sub-section 2 of Section 15 of the EA in various newspapers.