PFC to disburse Rs 35,000-cr loan, to fund nuclear plants

State-run firm Power Finance Corporation (PFC) plans to disburse loans for Rs 35,000 crore in the current fiscal. The company is also in discussions with Nuclear Power Corporation of India (NPCIL) for lending Rs 12,000 crore to set up two nuclear plants.

The nuclear plants will come up in Gujarat and Rajasthan with a total capacity of 2,800 MW. NPCIL is setting up two units of 700 MW each at Kakrapur atomic plant in Gujarat and Rajasthan atomic power plant.

"We are talking to NPCIL. We have to decide whether we will fund these projects over 15 years, the way we do in thermal projects", PFC chairman and managing director Satnam Singh said.

"NPCIL was earlier a cash rich company...Now they are seeking funds from lending agencies like us for their projects," Singh said.

PFC and NPCIL had signed a Memorandum of Understanding in October, 2010, for offering financial assistance to NPCIL for its new power projects as well as renovation and refurbishment of life extension projects.

PFC also plans to issue tax-free bonds to raise Rs 5,000 crore of the total borrowing target of Rs 30,000 crore in the current financial year for funding power projects.