Sterlite Power has achieved another significant milestone by successfully concluding the refinancing of the Lakadia-Vadodara Transmission project loan. The project became fully operational in January 2023, and this refinancing was accomplished within a remarkably short time frame of 12 months.
The refinancing was made possible through a collaboration with HDFC Bank, India Infrastructure Finance Company Limited (IIFCL), and Bank of Baroda. These institutions provided new financing, allowing Sterlite Power to prepay the existing project loan of approximately ₹1,840 crores. This achievement is a testament to Sterlite Power’s commitment to strategic resource reallocation and delivering value to all stakeholders.
The new refinancing secures a reduced interest rate of around 8.25% per annum per month, a substantial improvement over the previous terms. Moreover, the overall tenure of the facility is approximately 18 years. As the first private sector inter-state power transmission asset to secure such favourable refinancing terms, this accomplishment underlines the keen interest of financial institutions in supporting power transmission projects that offer stable, long-term cash flows.
The Lakadia-Vadodara Transmission project, also known as the LVTPL project, plays a critical role in connecting the 765/400 kV substation at Lakadia to Vadodara through a 335 km long, 765 kV double-circuit transmission line. This power transmission corridor, with 812 towers spanning across seven districts in Gujarat, is one of the largest transmission assets built in India to date.
Commenting on this milestone, Pratik Agarwal, Managing Director of Sterlite Power, expressed his satisfaction, stating, “Refinancing our commissioned projects is in line with our efforts toward strategic reallocation of resources. Securing a better interest rate for the commissioned project further adds to our bottom line while delivering value to all stakeholders.”
