Raigarh Thermal Power Plant

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In 2004, Jindal Power Limited (JPL), a wholly owned subsidiary company of Jindal Steel and Power Limited (JSPL), began construction of a 500 MW thermal power plant on build-own-operate (BOO) basis at Raigarh, in the Indian State of Chhattisgarh. JPL committed to supply 350 MW to JSPL through a power purchase agreement (PPA). JPL was to supply the remaining 150 MW to Chhattisgarh State Electricity Board under a power purchase and wheeling agreement that was signed in May, 2001. JPL achieved financial closure in September, 2004. The cost of the 500 MW power plant was estimated at Rs 214,200 lakh (US$ 472.64 million) and was financed in the ratio of 70 percent debt and 30 percent equity. The equity portion, amounting to Rs 64,200 lakh (US$ 141.66 million) was funded by JSPL. A consortium of 12 banks and financial institutions led by Power Finance Corporation (US$ 115.8 million), State Bank of India (US$ 60.68 million) and Punjab National Bank (US$ 37.29 million) financed the Rs 1500 crore (US$ 330.98 million) debt for the project. The loan was a 13 year door to door term loan at a margin of about eight percent. The thermal power plant was accorded mega power project status by Government of India as it was authorized to have a final generating capacity of 1000 MW. JPL decided to implement the power plant in two phases of 500 MW each. As of January 2005, JPL was in the process of obtaining Ministry of Environment & Forest clearance for the next 500 MW. The power plant was expected to begin commercial operation in 2007. Unit 1 of 250MW was commissioned on 2nd September 2007. Unit-2 of 250MW was commissioned on 6th March 2008. Unit-3 of 250MW was commissioned on 10th February 2008.