Haryana to borrow Rs 3489 Cr for setting up power project

Chandigarh, Apr 21 (UNI) The Haryana Cabinet today allowed the Haryana Power Generation Corporation to borrow Rs 3489.03 crore from NCR Planning Board, Power Finance Corporation of India and Rural Electrification Corporation of India for construction of 2x600 MW Rajiv Gandhi Thermal Power Project, Khedar in Hisar district.

Chief Minister Bhupinder Singh Hooda said NCR Planning Board will finance Rs 500 crore for the project, Power Finance Corporation of India will finance Rs 1453 crore and Rural Electrification Corporation of India a sum of Rs 1536 crore.

The total cost of the project is Rs 4300 crore and these three Financial Institutions will provide 80 per cent debt portion of the project.

The Cabinet also approved to allow Haryana Power Generation Corporation to create charge or provide security for availing these loans, as per terms and conditions of these leading Institutions.

In another significant decision, the cabinet also exempted the Renewable Energy Power Projects from levying of change of land use charges, external development charges, scrutiny fee and infrastructure development charges.

The Town and Country Planning Department will permit these projects without levying the charges.

To promote the renewable energy power generation, the state government has notified a policy for Promoting Generation of Electricity through Renewable Energy Sources. Haryana Renewable Energy Development Agency (HAREDA), which is the nodal agency to promote and implement renewable energy projects and programme has entered into a Memorandum of Understanding (MoU) with Independent Power Producers for setting up 23 biomass based power projects.

It will also set up four wind energy based power projects and three small hydro based power projects with a cumulative capacity of 697.7 MW at a total cost of Rs. 3278 crore.

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