Finanical issues of Nagarjuna power plant to be cleared in 2 months

Mangalore, Aug 5 (UNI) All financial issues involved in the proposed 1,015 MW coal-based thermal power project by Nagarjuna Power Corporation Limited (NPCL) at Yellur in Udupi district are expected to be cleared within the next two months, project Chief Operating Officer (COO) Praveen Sinha said today.

Addressing newspersons here, he said various financial institutions have agreed 'in principle' to finance the Rs 4,300 crore project to the tune of Rs 3,440 crore, including the Power Finance Corporation (Rs 950 crore), Rural Electrification Corporation Limited, HUDCO and Bank of Baroda (Rs 500 crore each) and Andhra Bank (Rs 300 crore). The balance loan was in various stages of sanction from other public sector banks like State Bank of India and its subsidiaries and it was expected to be completed before financial closure in September, he added.

Mr Sinha said the company had been successful in getting 64 approvals from various Government agencies and the project was ''ready for the implementation stage. We are totally successful in getting clearances from the successive Governments.'' He said the company had also proposed to set up an industrial park near the project site to help the educated youths of the displaced families to set up ancilliary units. The company had planned to set up 100 units in the proposed industrial park in a ten-acre land.

Mr Sinha said the company had proposed to invest Rs one crore to take up welfare activities for fishermen community and women such as insurance scheme for 5,000 fishermen, setting up a factory for manufacturing equipment for physically challenged and organising Stree Shakti groups to take up recycling of papers on cooperative basis. The training required would be provided by the company, besides helping them get financial assistance from financial institutions.

He said the company had also proposed to provide matching grants for setting up sanitation in the surrounding areas of the project site. The work of identification and implementation of sanitation projects would be taken up by the company.

He said that during the construction period, the project would provide both direct and indirect job opportunities to around 10,000 people and about 1,000 direct jobs at the time of commissioning of the plant. Priority would be given to locals in both skilled and unskilled labour, he added.

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