NTPC in talks with KfW for funds to set up power plant in Raj

State-run National Thermal Power Corporation (NTPC), which plans to set up a 15 MW solar power plant at Anta in Rajasthan, is in talks with a German bank KfW, among others, to tie-up for funds.

It is understood that the power utility would be signing a loan agreement with German government-owned bank, KfW for $100 million.

"We are working out the modalities of the project and are in talks with various banks for loans. We are also in talks with KfW to tie-up for funds but nothing has been finalised as of now," a NTPC official told PTI on condition of anonymity.

However, a KfW senior official confirmed that it would be signing an agreement with NTPC soon to lend $100 million for the solar thermal project.

"We will be signing a loan agreement with NTPC for funding its 15 MW solar thermal power project in the next couple of months," KfW's Director, Oskar von Maltzan, said.

The cost of the project is estimated at around Rs 225 crore (Rs 15 crore per MW).

At present, NTPC has a total installed capacity of over 33,650 MW.

The Corporation has formulated a business plan of capacity addition of about 1,000 MW through renewable resources by 2017.

Capacity addition of 301 MW through solar PV and thermal by March 2014, has also been envisaged in line with National Solar Mission.

The German lender is also planning to expand its activities with NTPC in the field of solar thermal in the next few years, Maltzan said.

"We are currently busy supporting the Corporation in writing detailed project reports (DPRs) for feasibility study for solar thermal power projects which would be based in Rajasthan and Gujarat," he said.