Usegaon Thermal Power Project

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In 2007, Gupta Group signed a contract Government of Maharashtra (GoM) for development of thermal power plant in Usegaon, Chandrapur district of Maharashtra. The project involves development of 120 MW (2*60 MW) coal-based power plant. The consortium established Gupta Energy Private Limited (GEPL), a special purpose vehicle, to implement the project. Gupta Group bagged the tender on a negotiated basis. The project achieved its financial closure in October 2008 with a debt equity ratio of 70:30. The project was expected to cost approximately USD 152 million. GEPL expects to finance this project through an equity contribution of USD 46 million and a loan of USD 106 million. In October 2008, USD 106 million loan was arranged to finance the project. Axis Bank Ltd was the sole book runner in a deal in which several Indian banks were lenders. Construction began in April 2008 and was expected to be completed by September 2010.