NEW DELHI: Mining conglomerate Vedanta Ltd has secured an 11-year term loan of Rs 3,918 crore from Power Finance Corporation Ltd (PFC), sources said.

The financial closure will enable Vedanta to expedite completion of its power projects.

The group plans to increase the operating capacity of its power business in India to 4.8 GW by FY27, sources with knowledge of the matter said.

The latest financing follows Vedanta group’s takeover of Meenakshi Energy Ltd on December 28 in an NCLT-driven insolvency process.

Meenakshi Energy has a coal-based power plant at Nellore, Andhra Pradesh, which Vedanta will use to supply power to merchants.

Vedanta has acquired two plants - Meenakshi Energy Ltd in Andhra Pradesh with a capacity of 1 GW, and Athena Power in Chhattisgarh with a capacity of 1.2 GW.

It will primarily use the funds for these two of its key power plants, they said.

The funding is part of the group’s renewed focus on growing its energy portfolio in India.