The Power Finance Corporation (PFC) has sanctioned loans totalling Rs 483 crore to provide transmission facilities at the Dabhol power project and expansion of Khaperkheda thermal power plant, both in Maharashtra.
The two loans were sanctioned at the PFC board meeting on October 20, the corporation sources said.
The loan sanctioned by PFC for undertaking the Dabhol stage-I transmission project is the first such loan extended by the corporation to a private utility through Maharashtra State Electricity Board (MSEB), the sources said.
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The estimated cost of the transmission project is Rs 296 crore, out of which the MSEB would be investing about Rs 163 crore with the rest coming as loan from PFC, they said.
The project is expected to be commissioned by March 1999.
Khaperkheda, the 420 mw thermal power project, after failing to attract private participation will now be undertaken by the MSEB with its own resources.
MSEB had sought a Rs 515 crore loan for this purpose and the PFC had sanctioned Rs 350 crore on standard terms. MSEB has committed to complete the Khaperkheda stage-II project expansion within 36 months and PFC had earlier provided financial support of Rs 93 crore to MSEB for the Khaperkheda stage-I project, the sources said.
MSEB would establish a 400 kv transmission system for evacuating the power from the Dabhol power station, they said and added that the additional energy would be available for sale at 4,948 megaunits per annum.
For the Khaperkheda power project, the MSEB has to submit an undertaking that the project would not be transferred to any private party without prior consent of PFC, the sources said.
MSEB shall also set up a project review committee for reviewing the physical and financial progress of Khaperkheda project on a quarterly basis.
This is with a view to controlling the time and cost over-run and the review committee shall also include a representative from PFC, the sources said.
This committee shall be set up within three months of the loan being sanctioned, they said.