PFC lends Rs 22,000 cr to Narmada Basin Projects for 225 Mw hydel project

A wholly-owned company of the Madhya Pradesh govt, is building as many as 12 projects

Leading power sector lender, Power Finance Corporation (PFC), tied an agreement with th with Narmada Basin Projects Company Limited (NBPCL) to fund projects worth Rs 22,000 crore for upcoming 225-Mw hydro-electric plants and multipurpose projects in Madhya Pradesh.

NBPCL is a wholly-owned company of the state government of Madhya Pradesh and is building a hydro power plant and lift irrigation among 12 other allied projects. 

PFC, which is a leading lender in the power sector, has been diversifying into other areas the past few years, owing majorly to a slowdown in thermal power sector. The financer has diversified its loan portfolio to fund irrigation schemes, railway electrification, Smart Cities project, e-vehicle manufacturing & charging infrastructure and micro grids.

"The MoU will help PFC to actively partner with NBPCL and provide finance for hydro-electric plants totaling 225 Mw along with power components of multipurpose projects as part of state government’s endeavor to implement twelve major multipurpose projects," PFC said in a public statement. 

Some of the major multipurpose projects that will be financed under the MoU are Basaniya Multipurpose Project Dindori, Chinki Boras Multipurpose Project Narsinghpur Raisen Hoshangabad, Sakkar Pench Link Narsinghpur Chhindwara, Dudhi Project Chhindwara Hoshangabad, etc.

PFC will consider the financial assistance to NBPCL based on due diligence and on mutually acceptable terms, the company said.