Neyveli Lignite: fund raising spree continues

Mining and power company Neyveli Lignite is planning to raise about Rs. 1,900 crore through ECBs or bond issue or a mix of both.

The proceeds will be invested in two major projects - expansion of mine II by 4.5 MTPA, and setting up of 500 MW power projects at Neyveli and Barsingsar (in Rajasthan). The two projects require an investment of Rs. 6,300 crore, and would be funded with 70:30 debt/equity mix. It has already raised Rs. 2,500 crore at 9%, through a consortium of bankers led by Canara Bank.

During 2007-08, Neyveli Lignite made a capex of Rs. 1,700 crore. The capex for 2008-09 is expected at Rs. 1,000 crore.