Tata Power has received a major boost as International Finance Corporation (IFC) has agreed to lend $450 million (Rs 1,800 crore) with 20 year tenure for setting up the 4,000 MW Ultra Mega Power Project (UMPP).

IFC, a member of the World Bank, has received the approval of its board to lend $450 million for the project.  
Mundra UMPP, a greenfield coal-fired plant located near Mundra port in Gujarat, is India’s first private sector power project with supercritical technology and is promoted by Gujarat Power, a special purpose vehicle company.

The first of the power plant’s 800-megawatt units is expected to be commissioned in mid-2011 and the other units will be launched at intervals of four months each.

The plant will create 5,000 jobs during construction and 700 jobs once operational. It will provide power to industrial and agricultural users and serve 16 million domestic consumers in five states of northern and western India.

Tata Power is India’s largest private sector power company with an operating capacity of 2,355 mw, including 1,838 mw thermal and 457 mw hydro-energy. It also engages in the design and development of defense systems, such as multi rocket launcher systems and fire control computers.