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National Thermal Power Corporation (NTPC) has formalised a loan agreement for Rs 6,608 crore to finance capital expenditure of a 1,320 mw power project being set up in Uttar Pradesh.
"Meja Utpadan Nigam Pvt... Signed a loan agreement for Rs 6,608 crore to finance capital expenditure of the power project consisting of two units of 660 mw being set up at Meja near Allahabad, Uttar Pradesh," NTPC said in a statement.
Meja Utpadan Nigam is a 50:50 JV between the country's largest power producer and Uttar Pradesh Rajya Vidyut Utpadan Nigam.
Taking advantage of falling interest yields, the deal was finalised between the two companies during a short span.
The proceeds will also be utilised partly to refinance costlier loan from a consortium of banks and financial institutions. To ease future cash flows, the loan offers extended repayment period, the company said.
The agreement was executed in the presence of NTPC CMD Gurdeep Singh.
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