OPGC expansion project secures financial tie up with PFC

OPGC expansion project secures financial tie up with PFC
Odisha Power Generation Corporation (OPGC) today signed a loan agreement with Power Finance Corporation and Rural Electrification Corporation for financing its proposed expansion project of 1320 MW thermal power plant. OPGC, which already has two thermal power units of 210 MW each in Ib Valley area, would add generation of 1,320 MW electricity by expanding third and fourth units having capacity of 660 MW each. The expansion project including development of captive coal mine and railway transportation system has taken a major leap with finalisation of the financing arrangement with PFC and REC, Energy Secretary P K Jena said.

The funding of the expansion project with an estimated total cost of Rs 11,547 crore is based on a Debt to Equity ratio of 75:25. The debt component of Rs 8660 crore has been agreed to be financed in the ratio of 50:50 by PFC and REC on a long term basis to be recovered over a period of 20 years, Jena said. The loan agreement with PFC and REC was executed by OPGC Managing Director Venkatachalam Kuppusami and the representatives of PFC and REC in a signing ceremony formally organised for the purpose here. PFC CMD Satnam Singh and Director Finance REC Ajeet Agarwal were also present in the ceremony. Meanwhile, Jena said the OPGC's expansion project had obtained various clearances and permits. Land acquisition for mines and exclusive railway corridor are under progress through the state run IDCO (industrial infrastracture development corporation). "Recently the project got the major boost with the grant of stage-I forest clearance and environment clearance for the captive mine," said OPGC MD venkatachalam K.

The evaluation of the EPC (engineering procurement and construction) tendering for procurement of main plant equipments and award of erection thereof along with balance of plant and ancillary facilities is under progress, the OPGC MD said. "If project activities move as per schedule, the construction is expected to start in early 2013," the MD said adding that OPGC has already entered into a long term Power Purchase Agreement (PPA) with GRIDCO (grid corporation of Orissa) for sale of 660MW power and applied for long term open access for direct sale of balance 660MW. Earlier, PFC chairman Satnam Singh met Chief Minister Naveen Patnaik at secretariat and discussed about projects of Odisha Integrated Power Limited which planned setting up a 4,000 MW coal based power plant in Sundergarh district. PTI

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Story first published: Saturday, November 24, 2012, 0:01 [IST]
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