Subsequent to the MoU, a part of the pension fund to the tune of Rs 320 crore would be managed by SBI Life Insurance Co Ltd, the insurance subsidiary of SBI.
"We have provisioned Rs 657 crore this year in the pension fund for the employees. Of this half would be managed by SBI Life and the rest by Life Insurance Corporation of India (LIC)," said AK Burman, chairman DVC.
The total size of the pension fund for the employees of the corporation is Rs 1,747 crore.
According to a decision of the appellate tribunal, DVC had to provision Rs 944 crore in the last two fiscals, to meet the immediate pension requirement of its employees, from the tariffs in the pension a gratuity fund.
When contacted, US Roy, MD & CEO, SBI Life Insurance Co Ltd admitted the developments, but refused to divulge any further details, saying, "Everything would be worked out subsequent to the MoU to be signed by SBI and DVC."
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SBI-the largest lender in the country would provide line of credit for the upcoming projects planned in the Twelveth Five Year Plan, which so far includes five super critical projects with estimated capacity of 1320 Mw each and in addition to this the bank would also provide financial support for the working capital and provide loans at a concessional rates to the employees of DVC.
"On the social side, SBI would set up a rural training institutes in the valley and would provide micro finance to the eligible persons, say for developing a watershed project," Burman added.