Abhijeet Power to raise $1.2bn debt by March: Source

Abhijeet Power Ltd, an unlisted utility with an operational capacity of 246 MW, plans to raise Rs 5,920 crore debt for a 1,320 MW coal-fired power project by March, a source close to the development said.

"The funds are tied up, but the final papers are yet to be signed," said the source, who declined to be identified as he is not authorised to speak to the media.

Axis Bank , India's third largest private bank by market capitalisation, is the lead banker for the Rs 7,400 crore power project, he said.

The project in the state of Bihar is being developed by Abhijeet Power's unit, Jas Infrastructure and Power Ltd (JIPL).

Rajesh Tulsiani, Chief Financial Officer, Abhijeet Power, confirmed the development.

Axis Bank,  Punjab National Bankand UCO Bank, both state-run, have underwritten the loan and Jas Infrastructure will sign consortium documents by March, he said.

Other lenders in the consortium include Rural Electrification Corp, Power Finance Corp, Bank of India , State Bank of Bikaner and Jaipur, Oriental Bank of Commerce, IIFCL , HUDCO and Life Insurance Corp of India, the source said.

Jas Infrastructure will fund the project through 20% equity and 80% debt, the source said.

Abhijeet Power, which has filed for an  Rs 1,375 crore initial public offering with the Securities and Exchange Board of India, is also setting up a 1,080 MW coal-fired power project in the state of Jharkhand.