KfW will provide Rs 1,550 cr for a Rs 2,706-crore project
The German government has approved its financial institution KfW's loan assistance of Rs 1,550 crore for the 660-MW super-critical thermal power unit at Vijayawada Thermal Power Station (VTPS).
A KfW delegation led by its principal project manager Roland Maehrle today held discussions with the officials of the Andhra Pradesh Power Generation Corporation (APGenco) on drafts of loan agreements, project agreement, and contract for tendering and implementation consultancy for the project.
APGenco will be investing 20 per cent of the total project cost of Rs 2,706 crore as equity, while Rural Electrification Corporation (REC) has agreed to provide a loan of Rs 854 crore.
According to the chairman & managing director (CMD) of APGenco, J Parthasarathy, the advanced super-critical technology, proposed to be adopted for the new unit, yields higher overall efficiency due to lower fuel consumption and lower auxiliary power consumption in the plant and also ease of operation.
The detailed report (DPR) for the project, which has already received all clearances for implementation, has been prepared by Lahmeyer International, Germany, and environmental impact analysis study was conducted by Fichtner, Germany.
The expenditure for both the studies was met through a grant from the German government.
The implementation consultancy contract, the first major milestone for availing KfW loan, will be awarded next month, APGenco said in a release.
Another consultancy contract for assisting APGenco in specialised fields like fuel supply agreement, power purchase agreement, financial closure will also be awarded next month, the release added. The project is expected to be commissioned by March 2007.
