KSK Energy ties up $3.6 bn in loans for Chhattisgarh project
Next time you are investing in mutual funds, make sure you issue a cheque from your own bank account, as fund houses will soon start rejecting third-party payments.business Updated: Sep 21, 2010 03:54 IST
The Indian unit of London-based KSK Power Ventur Plc said on Monday it had tied up $3.6 bn (R17,000 crore) in loans and equity for a 3,600-megawatt thermal power project in central India.
Shares in KSK Energy Ventures Ltd, which has started civil work on the complex in Chhattisgarh, rose 6.7 per cent on the news. Big scheme
The company has appointed Chinese firm Shandong Electric Power Construction Corp to design and build the project called KSK Mahanadi, while Indian firms such as Punj Lloyd and Petron Engineering Construction have been offered sub-contracts.
Twenty-seven banks and institutions have offered $2.9 billion in loans, while state-run finance firm IFCI Ltd has agreed to invest $56 million for a 7.7 percent stake.
KSK Mahanadi has signed a bulk power transmission agreement with Power Grid Corp of India. The company did not say when the project would be completed. The KSK Group, founded by two finance professionals S. Kishore and K.A. Sastry, has four operational power plants in India with a combined capacity of 279 megawatts.