Reliance Power, the flagship power company of Anil Dhirubhai Ambani Group, has raised around Rs. 4,000 crore (Rs. 40 billion) of debt from public sector infrastructure financing company Power Finance Corporation to achieve financial closure of two ultra mega power projects.
The UMPPs are coming up at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
"PFC has committed Rs. 2,000 crore (Rs. 20 billion) of debt each for two of Reliance Power's upcoming UMPPs in Sasan and Krishnapatnam," two banking sources familiar with the debt arrangement said.
The loan raised have a maturity period of around 20 years with an average interest rate of 12 per cent, the sources said.
Queries sent to the company remained unanswered. Reliance Power had recently bagged three UMPPs in the country. The third is in Jharkhand.