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PFC signs MoU with NBPCL to fund projects worth Rs 22,000 Cr

PFC has signed an MoU with NBPCL, to fund projects worth Rs 22,000 crore, for 225 MW hydro-electric projects and other multipurpose projects to be developed in Madhya Pradesh

CMD, PFC, Rajeev Sharma signing MoU with NBPCL to fund projects worth Rs 22,000 crore for 225 MW hydro-electric projects
CMD, PFC, Rajeev Sharma signing MoU with NBPCL to fund projects worth Rs 22,000 crore for 225 MW hydro-electric projects

New Delhi: Navratna Power PSU and India's leading NBFC, Power Finance Corporation (PFC), on Thursday has entered into an agreement with Narmada Basin Projects Company Limited (NBPCL), a wholly-owned company of the government of Madhya Pradesh, to fund projects worth Rs 22,000 crore for 225 MW hydro-electric projects and multipurpose projects in the state of Madhya Pradesh. The MoU has been signed by PFC's Chairman & Managing Director (CMD) Rajeev Sharma and NBPCL's Managing Director (MD) ICP Keshari on a virtual platform in the presence of senior officials.

In a press release, PFC said that the funds will be deployed by NBPCL for setting up hydroelectric projects of 225 MW and power components of 12 major multipurpose projects in Madhya Pradesh. The government of Madhya Pradesh has conducted the pre-feasibility study of these projects and has provided approval for their execution. The disbursal of the amount will be linked to the execution of the projects.

The MoU will help PFC to actively partner with NBPCL and provide finance for hydro-electric plants totalling 225 MW along with power components of multipurpose projects as part of state government’s endeavour to implement twelve major multipurpose projects.

Some of the major multipurpose projects that will be financed under the MoU are Basaniya Multipurpose Project Dindori, Chinki Boras Multipurpose Project Narsinghpur Raisen Hoshangabad, Sakkar Pench Link Narsinghpur Chhindwara, Dudhi Project Chhindwara Hoshangabad, etc.

PFC will consider the financial assistance to NBPCL based on due diligence and on mutually acceptable terms.