REC, PFC sign pact to extend finance of Rs 8,520.92 cr to Buxar Thermal Power Plant

New Delhi: REC Limited and Power Finance Corporation Limited (PFC), the CPSEs under the Ministry of Power, have signed a Memorandum of Loan Agreement with SJVN Thermal Private Ltd (STPL) for extending finance of Rs 8,520.92 crore to 2×660 MW coal-based Buxar Thermal Power Plant (BTPP). The MoA was signed in the presence of PFC CMD RS Dhillon, SJVN CMD NL Sharma, REC Director (Finance) Ajoy Choudhury and REC Director (Technical) VK Singh and other senior officials on October 19.

REC CMD says pact will benefit power sector

Highlighting the significance of the agreement, REC CMD Vivek Kumar Dewangan said 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 several years to come.

SJVN Thermal Private Limited is a 100 percent wholly-owned subsidiary of SJVN Ltd (Mini Ratna CPSE under administrative control of Ministry of Power, Government of India). Currently, STPL is executing the 2×660 MW coal-based Buxar Thermal Power Plant (BTPP), which is a green field project designed on supercritical technology with the objective to improve the supply of electricity in India's eastern region and providing power to the state of Bihar. The foundation stone for the project had been laid by Prime Minister Narendra Modi.

The total estimated cost of the project is Rs 12,172.74 crore, with debt requirement of Rs 8,520.92 crore. As per the MoA, the debt requirement shall be financed by REC & PFC.

(With PIB inputs)

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