SJVN signs MoU with PFC & REC for term loan of Rs 8,520 crore
New Delhi: The financial closure for the 1,320 MW Buxar Thermal Power Project being implemented by SJVN Limited through its subsidiary company SJVN Thermal Private Limited (STPL) was achieved on Thursday. The total debt tied up with India's leading NBFC PSU for power sector PFC Limited and REC Limited is Rs 8,520.92 crores which shall be funded equally i.e. Rs 4,260.46 crores each by both the PSUs. The financial closure agreement has been signed in the presence of SJVN Limited's Chairman & Managing Director (CMD) Nand Lal Sharma and PFC's CMD RS Dhillon by STPL's Chief Financial Officer (CFO) SL Sharma, PFC's Chief General Manager CBS Arunachalam and REC's Chief General Manager Sanjay Kulshrestra. Financial closure is a stage when all the conditions of a financing agreement are fulfilled prior to the initial availability of funds.
The ceremony of financial closure has also been graced by SJVN's Director (Finance) AK Singh, PFC's Director (Commercial) PK Singh and STPL's Chief Executive Officer (CEO) Sanjeev Sood. With the financial closure, 100 percent of the debt component for the project has been tied up.
Speaking on the occasion NL Sharma stated that Buxar Thermal Power Project has been awarded to SJVN for execution by the state government of Bihar. The engineering, procurement and construction (EPC) contract for the project was awarded to L&T Limited in June 2019 and project work is going on in full swing.
He also mentioned that the project is scheduled to be commissioned in June 2023. The project will generate employment opportunities for the locals, promote infrastructural development and herald a new era of socio-economic prosperity in the area.
The Project will be an important step towards achieving the shared vision of SJVN of becoming a 5,000 MW company by 2023, 12,000 MW by 2030 and 25,000 MW company by 2040.
SJVN's present installed capacity is 2,016.51 MW and projects of 5,674 MW are under various stages of development. SJVN has a presence in various sectors of energy generation which includes hydro, wind & solar. The company also has a presence in the field of energy transmission.
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