New Delhi: MB Power (Madhya Pradesh) Limited (MBPMPL) today announced that the Macquarie SBI Infrastructure Fund (MSIF) and the State Bank Of India (SBI) on behalf of the SBI Macquarie Infrastructure Trust will together invest Rs. 580 crore (approx US$130million) in MBPMPL’s Anuppur Thermal Power Plant.
MBPMPL – a step down subsidiary of Moser Baer Projects Private Limited is developing a 2,520 MW thermal power plant in multiple phases at Anuppur, Madhya Pradesh with an investment of Rs. 13,700 crore (USD$ 3 billion). With the current investment from MSIF and SBI, the first phase of 1,200 MW which is anticipated to cost Rs 6,240 crore is fully funded.
MBPMPL has already tied-up debt of Rs 4680 crore for the first phase of the project in Nov 2009 with SBI and Axis Bank as the lead banks. The 2520 MW Thermal power plant is expected to be commissioned in phases by the end of 2014. The EPC contract for phase 1 of the project has already been awarded to Lanco Infratech Ltd and construction at the site has commenced. This project is strategically located near major coal fields of South Eastern Coalfields Limited and is close to power deficit markets of Maharashtra, Gujarat and Madhya Pradesh.
Elaborating on the investment, Ratul Puri, Director, MBPPL, said “We are very proud to be associated with both SBI and MSIF. MSIF is one of leading infrastructure funds investing in India which primarily focuses on infrastructure development. Their in-depth understanding of the infrastructure sector and long investment cycles make them an ideal partner for our thermal business.”
Lajpat Shrivastav, CEO, Thermal Business, MBPPL said “Since Madhya Pradesh today faces a 17.7% power deficit, our power project will significantly address the state’s requirement of power and will additionally create large employment opportunities and augment the socio-economic development in district Anuppur and in the region.”
MSIF is an India focused infrastructure fund that is managed by a joint venture between Macquarie Capital (Macquarie) and the State Bank of India (SBI). IFC, a member of the World Bank Group, is a minority shareholder in the joint venture management company and a cornerstone investor in MSIF. SBI Macquarie Infrastructure Trust is a domestic fund being established by the SBI Macquarie joint venture, which is expected to be established soon
Varun Bajpai, CEO, SBI Macquarie Infrastructure Management Pvte Ltd, said: “We are very pleased MSIF has secured this investment. Given the significant power deficit in India, we believe the power sector offers considerable opportunities.”
“Moser Baer has a successful business track record and this project is being implemented by an experienced team.”
Mr Bajpai added that having successfully completed investments in Adhunik Power and Natural Resources, VIOM Networks Limited and other investments, MSIF and SBI (on behalf of the proposed Domestic Fund) have committed over US$600 million in year 2010.
Edelweiss acted as the financial advisor to MBPMPL on the transaction.