PFC-led lenders to give Rs 11K cr to Ghatampur power plant

State-run Power Finance Corp (PFC) -led consortium will provide a loan of Rs 11,067 crore to 1,980 MW thermal power plant at Ghatampur in Uttar Pradesh.
"PFC, as a lead lender, in consortium with Rural Electrification Corp (REC) and State Bank of India (SBI) participated in e-tendering process for funding of debt of Rs 11,067 crore of 3x660 MW coal-based thermal power station being executed by Neyveli Uttar Pradesh Power Limited (NUPPL) in Ghatampur tehsil, Kanpur Nagar, Uttar Pradesh," a PFC statement said.
The NUPPL has subsequently awarded LoA (letter of award) to the consortium of the PFC, REC and SBI for providing financial assistance of Rs 11,067 crore for the project and the lenders have given their consent.

The NUPPL is a joint venture company of the NLC India Ltd (NLC) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL) for supply of electric power in Uttar Pradesh.
The NLC has an installed capacity of 4301 MW with thermal and wind power plants in Tamilnadu and Rajasthan.
With a proposed capacity of 3x660 MW, Ghatampur coal based thermal power station is being developed at an estimated project cost of Rs 17237.80 crore to be funded in Debt-Equity ratio of 70:30.

Out of total debt of Rs 12,067 crore, Rs 11,067 crore debt is funded by PFC-led consortium. Balance debt is provided by Bank of India.

The 3x660 MW project is expected to be commissioned by November 2021 and generate approximately 13,969 million units of energy to meet the future power requirement of Uttar Pradesh.
The signing of the documents related to this loan arrangement took place at Puducherry on December 31, 2017 in the presence of Susheel Kumar, Secretary, Ministry of Coal.
The PFC has a long standing relationship with the NLC and has sanctioned loans worth Rs 7,278 crore in the past for various existing units of New Neyveli and Tuticorin Thermal Power Projects.
This upcoming thermal project is further expected to strengthen the relationship between these two entities.