NLCIL achieves financial closure for UP thermal power project

Public sector NLC India Ltd today said it has achieved financial closure for its 3x660 MW project in Uttar Pradesh with loan arrangement of Rs 11,067 crore.
The Tamil Nadu-based company is setting up new power project, totalling 1,980 MW under Joint Venture NLCIL-UPRVUNL (Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd) with share holding of 51:49 respectively.
The project is located in Ghatampur in Uttar Pradesh and project activities were on in full swing, the company said in a statement, adding that an expenditure of Rs 1,192.29 crore has been incurred so far.
The signing of documents relating to the loan arrangement took place today in Puducherry in the presence of Coal Ministry, Secretary, Susheel Kumar, NLCIL Chairman and Managing Director, Sarat Kumar Acharya, Power Finance Corporation, Chairman and Managing Director, Rajeev Sharma.

NLC India Ltd has agreed to the loan arrangment of Rs 11,067 crore with consortium led by Power Finance Corporation, including State Bank of India, Rural Electrification Corporation Ltd.
"The sanctioned project cost is Rs 17,237.80 crore and is planned to be funded with a debt equity ratio of 70:30", the statement said.
The loan arrangement for the project has been made through a transparent open tendering process, giving advantage of competitive rate and is expected to result in savings of more than Rs 700 crore in project cost, it said.