Sri Lanka India coal plant seeks debt finance: report

Dec 13, 2011 (LBO) - Sri Lanka's Trincomalee Power Company, a joint venture between state-run Ceylon Electricity Board and India's NTPC Ltd, has approached banks for a 385 million US dollar loan, a media report said.
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Bloomberg newswires, citing an undisclosed source said the 550 million US dollar plant would be financed with 406 million US dollars of debt.
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The report quoted NTPC commercial director I J Kapoor as saying loans would be organized after a feasibility report is approved by the firm's board on January 31.

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The plant will be in Muttur, off the Tricomallee harbhour in Sri Lanka's north east coast.

The Indian government is giving a 200 million dollar loan to Sri Lanka to cover a 75 million dollar equity investment by the cash-strapped CEB and for the utility to build infrastructure to take off power from the plant.

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