New Delhi: The REC Limited and Power Finance Corporation Limited (PFC) – the central public sector enterprises under the ministry of power have signed a memorandum of loan agreement with SJVN Thermal Private Ltd (STPL) to finance for the upcoming 2×660 MW coal based Buxar Thermal Power Plant (BTPP).
As per the MoA, the REC Ltd and PFC would offer ₹8520.92 crore finance for setting up the thermal power plant.
The agreement was signed in presence of R S Dhillon, chairman and managing director, (CMD), PFC, NL Sharma, CMD – SJVN, Ajoy Choudhury, director (finance) – REC and V K Singh, director (technical) – REC and other senior officials.
Speaking about the signing, Vivek Kumar Dewangan, CMD – REC 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 years to come.
SJVN Thermal Private Limited is a 100% wholly owned subsidiary of SJVN Ltd (Mini Ratna CPSE under administrative control of ministry of power, Govt. of India). STPL is currently executing coal based BTPP, which is a green field project designed on supercritical technology with the objective to improve the reliability of India’s eastern electricity region and providing power to the state of Bihar.
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The foundation stone for the project had been laid by the Hon’ble Prime Minister Shri Narendra Modi in March 2019. The project is estimated to cost ₹12,172.74 crore with debt requirement of ₹8520.92 crore. As per the MoA, the debt requirement shall be financed by REC & PFC.
The first unit of the plant is likely to be commissioned in June next year, while the second unit is likely to be operational by January 2024. The currently installed capacity of the plant is approximately 2000MW power with portfolio of 11,000 MW, which may be scaled up to 25,000 MW by 2040.
