RP Sanjiv Goenka Group flagship CESC Ltd has secured a term loan of Rs 712 crore from four banks towards meeting capital expenditure and retiring long term debt.
"In order to finance a part of the capital expenditure requirement as well to refinance certain costlier loans, the company has availed Rs 712 crore term loan. The company will seek shareholders' nod during the forthcoming AGM," CESC sources said.
CESC is expected to pump in around Rs 1,400 crore during 2016-17. Of this, capex towards distribution is around Rs 700 crore, renewable energy capex of Rs 600 crore and distribution franchise in Kota and Bharatpur in Rajasthan will require Rs 150 crore.
Long term borrowing by the company as on March, 2016 stood at Rs 10,477 crore.
Meanwhile, the company's Chandrapura power project in Jharkhand, which was facing a crisis of demand, seems to be easing. CESC had signed Power Purchase Agreement (PPA) of 100 MW with TANGEDCO which is operational from December 15 and 187 MW PPA approved by UPERC for supply of power to Noida Power Company from October, 2016.
CESC had said it was participating aggressively in power bids for the balance 300 MW and expecting 100 per cent off-take from this plant in FY18.
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