>Money Power (MOTILAL OSWAL)

During 2HFY09, financial closure for several power projects have been delayed given the global liquidity crunch, volatile interest rates, and funding constraints in the domestic markets. Given that the entire project debt is now to be raised predominantly from the domestic market, it presents its own set of challenges, given company/sector/group based ceilings for banks under existing norms.
Based on the capacity expansion plans of listed companies, we expect ~12GW of projects to achieve financial closure by mid-FY10. The projects likely to achieve financial closure include Reliance Power 4.9GW, GVK 910MW, CESC 600MW, GMR Energy 1GW, Adani Power 2.6GW and Jaiprakash Power 1.8GW.

To see full report: MONEY POWER