Mumbai: GVK Energy Ltd has closed funding for its 540 MW coal-fired power project in Punjab, having raised Rs500 crore from Deutsche Bank in priority funding, according to two people directly aware of the development. The funds raised will be used to make the plant—run by GVK Power (Goindwal Sahib) Ltd (GPGSL)—operational, a spokesperson for GVK said, without disclosing more details of the transaction that was concluded last month. Incorporated in 1998, GPGSL is a unit of GVK Energy, which in turn, is the subsidiary of GVK Power and Infrastructure Ltd (GVKPIL). The project has faced significant cost escalation for factors ranging from additional compensation paid for land acquisition, change in the scope of the project and design changes among others, resulting in project cost revision from Rs3,200 crore to Rs4,573 crore, resulting in cost overrun to the tune of Rs1,373 crore. GVK Group, which has a presence in energy, resources, airports, transportation, hospitality and life sciences, has a debt of close to Rs32,000 crore.

Source: Mint July 16, 2017 19:52 UTC