The disbursement for the project started on September 30, with PPN power receiving Rs 339 crore worth of rupee-term loans and a foreign currency loan of $93.744 million.

The project cost as approved by the lenders stands at Rs 1,175 crore. Financial institutions have also sanctioned Rs 470 crore as a rupee-term loan and a foreign currency loan of $98.46 million. The dollar loans will be arranged from the Japan Bank for International Cooperation.

The Rs 1,175 crore project has a 30:70 debt equity ratio with a total equity of Rs 352.50 and a debt of Rs 822.50 crore.

The Pratap Reddy owned Apollo group holds a 28 per cent stake in PPN power, while the rest is held by a consortium of foreign players, while Marubeni Corporation and Elpaso Energy Corporation have an overseas equity contribution of 26 per cent each. The remaining 20 per cent is held by PSEG Global. As on September 30, 2000, the shareholders have brought in Rs 290 crore of the total Rs 352.50 crore equity. However, the company declined to give lender-wise details of the loan disbursements.

The project has received an escrow cover from the Tamil Nadu State Electricity Board (TNEB) but PPN officials expressed their inability to comment on the tariff. The project, which is located in village Pillaiperumalnallur, Nagapattinam district, comprises of one combustion turbine (701 F make of Mitsubishi Heavy Industries), one steam turbine and one heat recover steam generator.

"The project is designed to have blended fuel firing-natural gas and naphtha. Flexibility has been put into switch fuels or simultaneously firing of gas and naphtha," PPN power generation managing director S Narayan said. The project is slated to be commercialised by April 2001 and the company says that as of date, there has been no delay in the implementation of the project. The auxiliary or associated facilities include fuel handling systems such as a single point mooring system, fuel storage facilities, and sea water desalination systems for providing water for process and other requirements. The project also has a colony to house maintenance personnel.