MahaVitaran inks MoU for loan

Mumbai, Feb 1 | Updated: Feb 2 2006, 08:36am hrs
The Maharashtra State Electricity Distribution company (MahaVitaran) on Wednesday inked memorandum of understanding (MoU) with Rural Electrification Corporation (REC) for Rs 3,000 crore loan to develop distribution infrastructure in the state. RECs interest rate would be 8.25%.

State energy minister Dilip Walse-Patil told reporters that MahaVitaran would use the loan amount during 2006-07 and 07-08 for feeder separation, single phasing, capacitor instllation, high voltage distribution system, setting up of sub stations and strengthening existing distribution infrastructure and develop new one.

REC chairman and managing director Anilkumar Lakhina said that REC was prepared to give more and more loan to Maharashtra. However, he added that Maharashtras share in RECs total disbursement has reduced to 7% in 2004-05 from 19% in 2000-01.

Mr Walse-Patil informed that MahaVitaran has already undertaken a Rs 11,703 crore plan for next five years to develop distribution infrastructure in the state.

Of the Rs 11,703 crore, MahaVitaran proposes to spend Rs 7,720 crore in 2005-06, 06-07 and 07-07. It has already tied up Rs 1,378 crore. MahaVitaran has signed last week MoU with Power Finance Corporation for a loan of Rs 2,000 crore at rate of interest of 7.71% for the same purpose. He added the Rs 3,000 crore loan from REC would be used for the same.

MahaVitaran managing director Sanjay Bhatia said that the balance amount would be mobilised from the accelerated power development and reform programme and also from the state government.

Meanwhile, Mr Walse-Patil said hoped that block-II of the now closed Dabhol project would be commissioned in May.