PFC ties up loan for Rs 4,342 crore NPCL power project

New Delhi, Oct 20 (UNI) The consortium of 14 banks and financial institutions led by Power Finance Corporation (PFC) has tied up loans for the 1,015 MW imported coal based Nagarjuna Power Corporation Limited (NPCL) project in Mangalore that would be completed in three years to help the southern state to tide over its electricity crisis.

Promoted by Lanco group which holds 74 per cent stake, the project has a total cost of of Rs 4,342 crores and is being funded in a debt equity ratio of 80: 20.

The total debt is Rs 3,474 crores and total equity of Rs 868 crore.

Ninety per cent of the total power generatd from this project will be sold to the distribution companies in Karnataka and balance 10 per cent to Punjab State Electricity Board.

The power purchase agreements have already been executed and the projects is expected to be commssioned by June 2009.

The Power Ministry and PFC yesterday organised a meeting with Export Credit Agencies (ECAs) and foreign banks to explore the possibility of extending financial assistance to ultra mega power projects in general and the Sasan and Mundra projects, which are also part of the mega project initiative of the government, in particular.

International banks like HSBC, Deutsche Bank, Bank of America, Japana Bank for International Co-operation (JBIC) and CommerzBank, BNP Paribas, Mizhuo Corporate Bank, Banca Intesa, Bank of Tokyo, Korean Exim Bank, Citibank, DZ Bank, Standard Chartered Bank, Nippon Export and Investment Insurance (NEXI) and KfW of Germany, were in talks with the ministry for the said projects.

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