The Asian Development Bank (ADB) has approved a loan amounting to $450 million (Rs 1,808 crore) to Coastal Gujarat Power Limited (CGPL), a subsidiary of the Tata Power Company Limited for the setup of a 4,000-megawatt energy-efficient coal power plant in Indian state of Gujarat.

The ADB loan will be provided in two installments, with the first totaling $250 million and the balance syndicated by ADB to the Export-Import Bank of Korea (KEXIM) through a risk participation agreement.

The project consists of 5 units, each of 800 MW, which will generate saleable power of 3,800 MW to be supplied to five states namely Gujarat, Maharashtra, Rajasthan, Haryana and Punjab.

The cost of the project is estimated to be Rs 17,000 crore with the first of the five units to be commissioned in September 2011.
The entire plant is expected to be commissioned by end of 2012.