Power Finance Corporation (PFC), a public financial institution dedicated to financing the power sector, has sanctioned R7,046 crore to fund a thermal power project to be set up by Raichur Power Corporation (RPCL) in Karnataka.
Talking to FE, R Nagarajan, director (finance) of PFC said, ?We have sanctioned the loan on their application. But they have not yet signed any agreement to avail the loan.? He has not disclosed about the rate of interest to be charged on loan. The rate of interest is depending on the date of disbursement, when the RPCL actually avail the loan, he added.
If they sign the agreement, the disbursement is expected to happen over the period of four years, said Rajiv Chandiok, general manager of PFC.
RPCL is a joint venture(JV) company of PSU Bharat Heavy Electrical (Bhel) and Karnataka Power Corporation (KPCL), the state-owned power generating company. The jv has been set up to build, own and operate supercritical thermal power plants in Karnataka.
Both the Bhel and KPCL through their joint venture are setting up 2×800 mw (1,600 mw) supercritical thermal power station at Yermarus village in Raichur district in Karnataka. According to KPCL sources, the Union ministry of environment and forests have given its nod for the project, which will be the state?s third thermal power project and second one in Raichur district.
Already RPCL has offered Rs 6,300 worth contract to Bhel. The contract envisages design, engineering, manufacture, supply, erection and commissioning of two coal-fired thermal units with supercritical parametres. This was the first order for a power project, bagged by Bhel through JV route.