GVK Power today said the cost of its 540-MW Goindwal Sahib thermal power project in Tarn Taran district of Punjab is now estimated at Rs 4,573 crore, sharply higher than the earlier estimate of Rs 3,200 crore.

“The project cost of GVK Power (Goindwal Sahib), a step-down subsidiary of our company, is estimated at Rs 4,573 crore up to November 1, 2015, after considering various factors,” GVK Power said in a BSE filing.

The cost escalation means a higher debt load for the company. The company further said: ”...the loan documents are purely bilateral between the lenders and the company.

Therefore, it’s not appropriate on our part to reply... Hence, we cannot comment on such articles.”

GVK Power (Goindwal Sahib) had completed the financial tie—up and arranged Rs 2,400 crore as loan for the power project in the beginning of 2010.

Then, the total cost of the project was estimated at Rs 3,200 crore, of which Rs 800 crore was equity and the rest debt.

IDBI Bank had syndicated the debt, apart from being one of the lenders in the consortium of bankers.