SJVN Thermal to receive Rs 8520 crore financing from REC, PFC, for Buxar power plant

20 Oct 2022 , 06:04 AM

SJVN Thermal Private Ltd. has signed an agreement with the state-owned REC Ltd. and Power Finance Corporation to receive funding totalling Rs8,520.92 crore for the construction of a 1,320 MW thermal power plant at Buxar.

According to a press release from the company, “REC Limited and Power Finance Corporation Limited (PFC) – Maharatna CPSEs under the ministry of power – have signed a memorandum of loan agreement with SJVN Thermal Private Ltd (STPL) for financing 2×660 MW coal-based Buxar Thermal Power Plant (BTPP).

The overall projected project cost, according to the announcement, is Rs12,172.74 crore, with an Rs8,520.92 crore loan requirement. According to the agreement, REC and PFC will finance the debt requirement.

In addition to other senior authorities, the agreement was signed in the presence of R S Dhillon, CMD of PFC, N L Sharma, CMD of SJVN, Ajoy Choudhury, Director of Finance for REC, and V K Singh, Director of Technical for REC.

This is a fantastic cooperation for the growth of the power and energy sector, according to Vivek Kumar Dewangan, CMD of REC, who talked to ET. All parties involved will gain from this agreement over the long term.

SJVN Thermal Private Limited is a fully owned subsidiary of SJVN Ltd, a central public sector organization of the Mini Ratna category that reports to the Union Power Ministry.

The STPL is currently working on the 2×660 MW supercritical coal-based Buxar Thermal Power Plant (BTPP), a greenfield project with the aim of enhancing the dependability of India’s eastern electrical sector and supplying power to the state of Bihar.

Prime Minister Narendra Modi had placed the project’s foundation stone.

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