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State-owned REC Ltd and Power Finance Corporation have inked a pact to provide Rs 8,520.92 crore finance for setting up a 1,320 MW thermal power plant at Buxar by SJVN Thermal Private Ltd.
"REC Limited and Power Finance Corporation Limited (PFC) - Maharatna CPSEs under the ministry of power -- have signed a memorandum of loan agreement with SJVN Thermal Private Ltd (STPL) for financing 2x660 MW coal based Buxar Thermal Power Plant (BTPP)," a company statement said.
According to the statement, the total estimated project cost is Rs 12,172.74 crore with debt requirement of Rs 8,520.92 crore. As per the agreement, the debt requirement shall be financed by REC and PFC.
The agreement was signed in the presence of R S Dhillon, CMD PFC, N L Sharma, CMD SJVN, Ajoy Choudhury, Director (Finance) REC, and V K Singh, Director (Technical) - REC, and other senior officials.
Vivek Kumar Dewangan, CMD REC, said in the statement that this is a great partnership for the development of the power and energy sector. It is an agreement that will mutually benefit all the stakeholders for years to come.
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SJVN Thermal Private Limited is a 100 per cent wholly-owned subsidiary of SJVN Ltd, a Mini Ratna category central public sector enterprise under administrative control of the Union power ministry.
The STPL is currently executing 2x660 MW coal based Buxar Thermal Power Plant (BTPP) which is a greenfield project designed on supercritical technology with the objective to improve the reliability of India's eastern electricity region and providing power to the state of Bihar.
The foundation stone for the project had been laid by Prime Minister Narendra Modi.
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