Housing and Urban Development Corporation Ltd (Hudco) has approved a Rs 140-crore loan for the upgrade of two thermal power plants in Uttar Pradesh.

The loan is critical for the power-starved state, which witnesses peak hour power deficit of almost 3,000 Megawatt (Mw) on a regular basis.

The two plants having an installed capacity of about 700 Mw are owned by UP Vidyut Utpadan Nigam Ltd. The ESPs would be installed in three and two units of Harduaganj and Parichha, respectively.

Precipitators are being used by many industries due to environmental concerns and government regulations. A precipitator removes particulate (dust and soot) and prevents it from entering in atmosphere.

Meanwhile, the state cabinet yesterday decided to provide free guarantee against Hudco loan. Earlier, the State Pollution Control Board had provided a No Objection Certificate (NOC) for the expansion programmes of these power plants on the condition that ESPs would be installed soon.

The total project cost is Rs 180 crore, of which 70 per cent would come from debt and 30 per cent from equity to be provided by Hudco and the state government.

“We had already placed the order for ESPs with Bharat Heavy Electricals Ltd (Bhel) and the work has been on after getting funds from the state government,” Nigam Managing Director Alok Tandon told Business Standard.

The whole project is likely to be completed by the 2009-10 financial year. Tandon said all the old power plants are mandated to conform to pollution control norms and such steps would be undertaken at other units also.

The total generation capacity of the hydro and thermal power units in the state, numbering 26, is about 2,500 Mw, while almost 3,000 Mw are imported from the central sector, which is much below the peak hour demand of over 8,000 Mw.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets open in red - Kingfisher Q3 loss widens by 75%, costs mount - Citigroup pays $158 mn in US mortgage fraud pact - Olympus ex-president, others arrested: media - Alibaba may take Hong Kong-listed unit private for $2.3 bn

Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  We live for our family. have you secured them? -  Earn fuel worth Rs.2400 with Citi -  India's No. 1 Property Site. Click here to know more.. -  Get 5% cashback on telephone bills with Citi -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Medium-sized businesses are the engines of a smarter planet. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...