OPGC gets additional equity for its expansion project

Bhubaneswar: The Odisha government and its strategic partner AES have reinforced their commitment to the expansion of OPGC by infusion of additional equity of Rs. 485 crore into OPGC in the proportion of their present holding of 51:49.

The fund will be invested for OPGC expansion project of 2X660MW supercritical units at Ib Thermal Power Station.

This infusion has come as a part of the equity requirement for the financial year 2016-17 as agreed by both of the shareholders in line with the schedule of drawal envisaged in the financing agreements entered with the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

The state government has released Rs 247.35 crore in favor of OPGC as equity contribution in proportion to its share of 51% whereas AES has brought its share of the additional equity of 35.39 million USD as FDI equivalent of Rs. 237.65 crore proportionate to 49% stake thus raising the paid up equity share capital of OPGC to about Rs.975/-crore from the existing equity base of Rs.490 crore.

As per the financing schedule, the state government and AES are required to bring together further equity about Rs. 1156 Crore in the Financial Year 2017-18 out of which AES’s share of Rs. 584 Cr. is expected to come in as FDI in forex.

The state government so far has been extending its cooperation in obtaining permits, licenses, fuel security arrangement and land acquisitions etc. for the above expansion project the construction of which was flagged off by the Chief Minister of Odisha in February 2014.

The two units of the power plant which are under construction are scheduled for going into commercial operation in the year 2018.The administrative support and commitment of the State Government for the OPGC expansion program combined with the management and technical support of the strategic partner AES, OPGC are poised to go a long way in making the state self-reliant in power and play the role of a catalyst for the industrial growth of the state.

It is pertinent to note that the funding of the above expansion project along with the development of mines with an estimated total cost of Rs.11,547 Crore is based on a Debt to Equity ratio of 75:25.