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Sembcorp To Buy 49% In Gayatri’s Power Plant For Rs 1,042Cr

11 February, 2011

Singapore-based infrastructure group Sembcorp Industries has invested Rs 364 crore as the first tranche of its total commitment of Rs 1,042 crore for picking 49% stake in Thermal Powertech Corporation India Ltd. IL&FS Private Equity-backed infrastructure firm Gayatri Projects is the Indian partner for the joint venture that will build, own and operate a 1,320 MW coal fired power unit at Krishnapatnam in Nellore (Andhra Pradesh).

The project that will have two units of 660 MW each has already achieved financial closure and the firm has signed definitive agreements with lenders for a debt of Rs 5,151 crore. Construction of the project has already commenced and commercial operations is expected to begin in the next 36 months.

Gayatri Projects had last month said, it is planning to invest up to Rs 1,000 crore in a separate power generation business run by Nagarjuna Construction and is looking to raise as much as Rs 400 crore through a rights issue to build its resources. The company, that also has private investment from ChrysCapital’s chief Ashish Dhawan, is already reported to be a partner of Nagarjuna Construction (backed by Blackstone and Rakesh Jhunjhunwala) in Nelcast Energy Corporation Limited.

Nagarjuna Construction’s energy arm NCC Power Projects Ltd had earlier disclosed it has acquired 55% in Nelcast Energy. This deal was pegged around Rs 150 crore. Gayatri Projects owns the balance 45% making it a joint venture power firm.

Formely an associate company of iron castings firm Nelcast Ltd, Nelcast Energy is developing a 1,320 MW thermal power project at Krishnapatnam in Andhra Pradesh. The project, which will be fed by imported coal, is estimated to cost Rs 6,822 crore.

Gayatri Projects has said it will invest Rs 1,000 crore in NCC Power Projects or its associates/subsidiaries through its own arm GEVPL. NCC Power Projects is at present a wholly owned subsidiary of Nagarjuna Construction. It is developing thermal power project with capacity of 2,640 MW in Andhra Pradesh.

Separately, Gayatri Projects is also going to raise upto Rs 400 crore through a rights issue. It will also reserve a certain portion of shares for its existing FCCB holders that will be above the issue size. IL&FS PE owned 5.16% and Ashish Dhawan held 2.75% stake in Gayatri Projects as of September 30.


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Sembcorp To Buy 49% In Gayatri’s Power Plant For Rs 1,042Cr

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