Saturday, August 13, 2022

Rs 8,448 cr loan agreement signed for STPL’s 1,320 MW Buxar thermal power project

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New Delhi: An agreement for a term loan of Rs 8,448.46 crore for the 1,320 MW Buxar Thermal Power Project at Chausa in Buxar district of Bihar has been signed between STPL and a consortium of leading Banks & Financial Institutions (FI) in a ceremony at Patna on Wednesday. The project is being executed by SJVN Thermal Pvt. Limited (STPL), a wholly-owned subsidiary of SJVN. The loan agreement was inked between the parties in presence of SJVN Limited's CMD Nand Lal Sharma. The ceremony has also been graced by SJVN's Director (Personnel) Geeta Kapur, SJVN's Director (Finance) AK Singh, SJVN's Director (Electrical) Sushil Sharma and STPL's CEO Sanjeev Sood.

STPL's Chief Finance Officer SL Sharma signed the agreement on behalf of STPL with consortium banks and financial institutions, which included State Bank of India, Canara Bank and IIFCL. SBI Capital Markets Ltd. is the sole financial advisor and debt arranger to the company for this transaction. The signing of the loan agreement paves way for funding of the construction activities in addition to equity being infused by the promoter.

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Addressing the gathering on this occasion NL Sharma highlighted the need for power for the overall development of the nation and the contribution of SJVN in this regard. He said that with an installed capacity of 2016.5 MW and an ambitious plan to add 25,000 MW to its portfolio by 2040 SJVN has emerged as a major power player in the country. He further told that with the commissioning of the 1,320 MW Buxar Thermal Power Project in June 2023, the power deficit of Bihar will be met to a large extent and shall bring about a remarkable improvement in the socio-economic development of the people of the State. Sharma specifically mentioned the cooperation and support received from the state government in the execution of the project and thanked the Chief Minister of Bihar Nitish Kumar and state government officials for the same.

Sharma also expressed his gratitude towards the consortium banks for reposing their faith in SJVN and extending term loan for the Buxar Project. Sh. Sanjeev Sood, CEO, STPL assured that the Project will be completed as envisaged in June 2023.

Backdrop

Buxar Thermal Power Project has been awarded to SJVN for execution by the government of Bihar. EPC contract of the project stands awarded to L&T in June 2019 and work in all components of the project is going on in full swing. The project will generate 9,828 MU of power annually. As per the power purchase agreement with the Bihar government, 85 percent of the power generated from the project will be given to Bihar and 15 percent will be sold to other power purchasers at the bus bar rate. The project will generate employment opportunities, promote infrastructure development and herald a new era of socio-economic prosperity in the Project area and in the entire state of Bihar at large.

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