NPCIL-Nalco Power Company has announced its plans to set up nuclear power plants in India.
The company, which is a joint venture between Nuclear Power Corporation of India (NPCIL) and National Aluminium Company (Nalco), will raise a term loan of up to Rs15bn ($276.12bn) over the next three months to fund the construction of power generation capacities in the country.
The total project size is Rs115bn ($2.12bn), with the total debt requirement at Rs70bn ($1.23bn).
NPCIL-Nalco Power is also exploring other options such as a bond issue or external commercial borrowings to raise funds.
Speaking to Business Standard, Nalco finance director, B L Bagra, said: "Initially, we are looking for Rs 1,000 to Rs 1,500 crore funding from various banks. We are in talks with the banks and hope to complete the process in the next two-three months."
Last week, the board members of the JV met in the city of Mumbai to check the progress of the construction works.
The civil construction is almost 87% complete and supplies of the equipment will start in the near future.
The joint venture intends to set up two 700MW capacity units by March 2016, but Bagra noted the construction has been hastened with the aim to complete it by the end of 2015.
Nalco now holds a 26% stake in the JV company with an option of taking it up to 49%, while NPCIL holds the remaining stake, according to the JV agreement.
In March 2011, the two state-owned firms joined hands to build nuclear power plants in the Surat district of Gujarat, India.