Shimla: Top management of SJVN, a central sector power company, has signed an agreement with Power Finance Corp (PFC) & Rural Electrification Corp (REC) at Delhi for a loan of Rs 8520.91 crore to finance construction of the upcoming 1320 MW Buxar Thermal Power Plant (BTPP) in Bihar.
The term loan inclusive of spread carries an interest rate of 8.60% per annum.
Though an MoU for financing the term loan with PFC & REC had been signed on 26th November, 2020 but owing to high interest rates an agreement could not be reached.
SJVN Thermal Pvt Ltd, a wholly owned subsidiary of SJVN, decided to swap the existing debt with the new agreement of the term loan of Rs 8520.92 crore, which has resulted in a saving of Rs 174 crore over the loan period on account of interest, the SJVN management has stated.
CMD of SJVN Mr Nand Lal Sharma said that the Buxar Thermal Plant was scheduled for commissioning in June 2023. It would help to mitigate the power deficit of Bihar to a large extent, he added.
Allocated by Bihar government the 1320 MW BTPP is designed to generate 9828 MU of power annually.
As per the Power Purchase Agreement with Bihar Govt., 85% of the power generated from the project will be supplied to Bihar State and 15% to be sold at Bus Bar rate to other power purchasers.
Those present at the agreement signing function included Sh. Nand Lal Sharma, CMD, SJVN Ltd, Sh. Ravinder Singh Dhillon, CMD PFC, Smt. Geeta Kapoor, Director (Personnel), Sh. A.K. Singh, Director (Fin.) & Sh. Sushil Sharma, Director (Electrical), SJVN Ltd., Sh. Ajay Choudhary, Director (Fin), REC, Sh. Vijay Kumar Singh, Director (T), REC, Smt. Parminder Chopra, Director (Fin.), PFC, Sh. Rajiv Ranjan Jha, Director (P), PFC Sh. Manoj Sharma, Director (C). PFC and Sh. Manoj Kumar, CEO and Sh. Manoj Kumar, CFO, STPL.