Sterlite Power concludes refinancing of Gurgaon Palwal Transmission project with HDFC Bank
The new facility has been availed at significantly favourable terms
Sterlite Power has successfully refinancing of the loan for Gurgaon Palwal Transmission [GPTL] project, within three months of the project becoming fully operational in April 2020. The new financing to prepay the existing project loan of Rs 800 crores has been arranged by HDFC Bank. The new facility has been availed at significantly favourable terms demonstrating the considerably improved risk profile of the project post achievement of CoD (Date of Commercial Operation).
With this transaction, Sterlite Power has achieved a reduction of almost 300 basis points in the interest cost to be incurred by the project on a per annum basis. The refinancing of this critical ISTS project also highlights the keen interest of financial institutions in funding power transmission projects with stable long-term cash flows.
Pratik Agarwal, MD, Sterlite Power, said, "We are pleased to conclude refinancing of our GPTL project loan by India’s leading financial institution, HDFC Bank. It is a testimony of the continued trust reposed on us by the banking and investor community for our ability to deliver challenging projects on time, with the highest standards of quality and safety, while delivering strong returns.”
Successfully commissioned in the month of April 2020, the GPTL project connects ~2000 MW additional power to Gurugram and Palwal areas in Haryana. Apart from making Gurugram DG-set free, this project will enable access to reliable power for more than 3 million households in the state. This project has implemented India’s first vertical GIS substations built at Prithla, Kadarpur and Sohna. Apart from saving land, this innovation has resulted in offsetting more than 18,000 tons of CO2 emissions each year as compared to conventional layout of a similar GIS substation.