IDBI enters into MoU with DVC for part-financing

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IDBI enters into MoU with DVC for part-financing

IDBI enters into MoU with DVC for part-financing upcoming power projects

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Industrial Development Bank of India Limited (IDBI), a leading player in infrastructure finance, today entered into a Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC), a leading power generating company, for part-financing the latter's prospective investment plans, estimated at around Rs.20,000 crore.

The MoU was signed by Shri Pradip Roy, Executive Director, IDBI and Shri T.K. Gupta, Director (Accounts), DVC at IDBI's Corporate Office in Mumbai. Shri V P Shetty, Chairman and Managing Director, IDBI, Shri A.K.Barman, IAS, Chairman, DVC, Shri Jitender Balakrishnan, DMD, IDBI, and Shri Balkrishan Batra, CGM, IDBI were also present on the occasion.

In terms of the MoU, IDBI would act as the Arranger and Investment Banker for DVC's upcoming power and transmission projects on mutually acceptable terms and conditions. The scope of work includes mobilizing and raising funds through various financial instruments, syndication of rupee term loans, foreign currency loans, export credits and providing project-related advisory services. The MoU will be in vogue till March 31, 2012.  

DVC has chalked out an ambitious programme of capacity addition of 4500 MW directly and 1500 MW through the Joint Venture route in West Bengal and Jharkand during the 11^th 5-year plan period at an estimated cost of Rs.20,000 crore. The fund requirement would be met though internal accruals of Rs.6,000 crore and term debt of Rs.14,000 crore.

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