India's largest sugar firm Bajaj Hindusthan said its shareholders' have approved the company's proposal to furnish investments and corporate guarantees worth up to Rs 1,240 crore for its power projects.
In a filing to the Bombay Stock Exchange, the company said that three special resolutions, circulated to the members through postal ballot, were declared as duly passed by the requisite majority. In early April, the company had sought shareholders' approval for infusion of up to Rs 1,040 crore in Lalitpur Power Generation Company Ltd (LGPCL) and another Rs 200 crore in Bajaj Energy.
Bajaj Hindusthan has formed a Special Purpose Vehicle (SPV) -- Lalitpur Power Generation Company Ltd (LPGCL)-- to develop 1,980 MW thermal project at Lalitpur in Uttar Pradesh at a cost of Rs 11,848 crore, of which Rs 8,886 crore to be funded via debt.
Another SPV, Bajaj Energy, has been formed to set up 5 power projects at five locations at a cost of Rs 2,320 crore.
As per the postal ballot notice, Bajaj Hindusthan had sought approval to provide loans and/or give guarantee for the short-term loan to be taken by LGPCL up to Rs 500 crore as the SPV is facing difficulty in getting term loan in absence of assured coal supply.
Moreover, Bajaj Hindusthan needs to invest Rs 771 crore for its 26 per cent equity in the LGPCL. It has already put in Rs 235 crore and about Rs 540 crore would be required as equity in phases.
It had also sought approval for up to Rs 200 crore investment into Bajaj Energy by way of equity contribution and/or subordinated debt to meet the additional expenses by the SPV toward cost overrun.
Bajaj Hindusthan has 16 sugar mills with a cane crushing capacity of 1.36 lakh tonnes per day.
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