Tata Power Company (TPC) will use a combination of instruments to finance its Rs30,000-crore, 4,000-mw Mundra ultra mega power project and 2,400-mw imported coal-based project in Maharashtra. These projects will have a debt-equity mix of 70:30.
TPC has projected Rs18,000 crore investment for Mundra and Rs10,000-11,000 crore for the Maharashtra project. Of the Rs18,000 crore, the loan portion will be around Rs12,000 crore and in the case of the Maharashtra project, the debt component will be Rs7,000-8,000 crore. The balance will come from internal accruals.
TPC MD Prasad Menon said the company would explore the option of approaching International Finance Corporation, Asian Development Bank and other foreign agencies. Besides, it will also seek loans from Indian financial institutions and consider a preferential rights issue.
Moreover, Menon said the company would re-look at its existing investment in Tata group companies and unlock value at the right time. He, however, added the company had not taken any decision on this as yet. TPC will use the 800-mw super-critical technologies for the Mundra project and has already inked a contract for a complete boiler island scope on EPC basis with Doosan.
For the current financial year, the company has planned a capex of Rs2,600 crore. Of Rs2,600 crore, Rs750 crore will be needed for Trombay's 250-mw unit, Rs400 crore for Haldia Met Coke (120 mw), DG sets phase I (Rs123 crore), Rs80 crore for land acquisition for the Maharashtra project and Rs500 crore for a wind power project in Maharashtra.
Menon said the $1.2-billion acquisition of Bumi mining companies in Indonesia would be funded through a debt of $950 million, of which $650 million would be non-recourse and $350 million through SPV with recourse.