Following attainment of financial closure, the project is scheduled to be commissioned by December 31, 2010.
RPTL signed financial agreements with various banks for funding of the projects.
The transaction, led by State Bank of India (SBI) witnessed participation from major banks and financial institutions including India Infrastructure Finance Company Ltd, Vijaya Bank, State Bank of Hyderabad, South Indian Bank, United Bank, State Bank of Bikaner and Jaipur, Andhra Bank and Bank of Maharashtra.
Lalit Jalan, chief executive officer and whole-time director of Reliance Infrastructure said “The financial closure of WRSS in just 70 days of the execution of PTA reflects inherent strength in the projects in terms of profitability and execution capabilities of the company.”
Lalit Jalan further added that “once completed and commissioned in time, WRSS will facilitate overcoming the grim power situation in the Western Region States in view of the availability of surplus power from the Eastern and Northern States”.
The projects are first of its kind in the transmission sector that is being implemented via 100% private participation. It involves setting up of 400 kV double circuit transmission lines covering 1,035 km in Maharashtra and 483 km in Gujarat. These transmission lines would together form Projects B and C under the WRSS, while Projects A and D are being developed by Power Grid Corporation India Limited (PGCIL).
These transmission projects would enable handling of 4,000 megawatts (MW) of power from the Eastern Grid and benefit the power-deficit Western Region.
RPTL bagged these projects through International Competitive Bidding on the basis of transmission service charges payable for a period of 22 years from the commercial operation date of the projects. The projects are being implemented under a robust contractual framework – an Implementation Agreement with PGCIL and Power Transmission Agreements (PTAs) with Beneficiaries of the Western Region.
