Saturday, May 14, 2022

SJVN achieves financial closure for Luhri-1 hydro project & Parasan solar project

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New Delhi: SJVN Limited has achieved financial closure for the 210 MW Luhri-1 Hydro Electric Project in Himachal Pradesh and 75 MW Parasan Solar Power Project in Uttar Pradesh. This information has been given by SJVN Limited’s Chairman & Managing Director (CMD) Nand Lal Sharma on Thursday.

According to CMD, the financial closure of 210 MW Luhri-1 HEP has been stamped with the State Bank of India (SBI). As per the loan agreement, SBI will provide Rs 1,537 crores at an effective interest rate of 6.90 percent per annum which is the debt portion of the total project cost of Rs 1,922.12 crores.

Sharma said that another milestone has been achieved by SJVN with the financial closure of the 75 MW Parasan Solar Power Project having the project cost of Rs 398.80 crores. The debt fund amounting to Rs 319.04 crores for the execution of the project is in place in the form of a Foreign Currency Term Loan (FCTL) sanctioned by Punjab National Bank (PNB), Dubai. The Bank will charge interest ranging from 1.78 percent to 5 percent after taking into account the foreign currency fluctuation.

“The financial closure is a stage of project development when all the conditions of a financing agreement are fulfilled prior to initial availability of funds by the financers,” said Sharma.

Sharma apprised that the foundation stones of the 210 MW Luhri Stage-1 Hydro Electric Project located in Shimla & Kullu districts of Himachal Pradesh were laid by Prime Minister Narendra Modi on December 27, 2021. The construction activities of the project are in full swing and moving fast forward to generate 758.20 million units in a 90 percent dependable year from April 2026 onwards. The levelized tariff for the generated electricity will be Rs 4.24 per unit.

Sharma further stated that the construction activities have commenced at 75 MW Parasan Solar Power project. On commissioning, the project will generate 168.343 million units annually at a tariff of 2.68 per unit. The project is scheduled to be commissioned in the financial year 2022-23. “The commissioning of the project will be our contribution towards achieving the national target of 175 GW renewable energy by the end of the current year.”

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