BGR inks pact with five banks for Mettur power project

Coimbatore: BGR Energy Systems has tied up credit lines to meet its working capital requirements for the execution of the 600-MW Mettur Thermal Power Project in Tamil Nadu with five banks committing a total credit of Rs 2,105 crore.

The company said that it estimated the fund based and non-fund based working capital facilities at Rs 2,105 crore and mandated SBI Capital Markets Ltd to arrange the financing facilities.

TNEB had awarded to BGR Energy the Rs 3,100- crore engineering, procurement and construction (EPC) contract for the project.

While the lead bank SBI would offer a total credit line of Rs 525 crore, the other banks that would be offering credit line are Indian Overseas Bank – second lead bank (Rs 580 crore), State Bank of Patiala (Rs 500 crore), Punjab National Bank (Rs 250 crore) and Vijaya Bank (Rs 250 crore).

The company said it was able to raise the credit despite tough liquidity conditions and this would enable the company to meet the cash flow, BG and LC requirements of the project for 39 months. Its current order book stands at Rs 10,591 crore.