Financial Daily from THE HINDU group of publications
Tuesday, Feb 03, 2004

Cross Currency

Group Sites

Industry & Economy - Power

REC to fund Bengal thermal project expansion

Indrani Dutta

Kolkata , Feb. 2

THE Rural Electrification Corporation (REC) has agreed to finance the Rs 1,000-crore expansion plan of the Santaldih Thermal Power project, making its first major fund infusion, since the cooling off of its ties with West Bengal on account of massive payment defaults.

State power department sources said that with the receipt of the sanction letter from the REC, the project has now achieved financial closure.

Confirming that this is REC's first major exposure in West Bengal since the mid-90s, sources said that while REC will provide Rs 800 crore for the project, the remaining portion would come from the State coffers and the internal generation of West Bengal Power Development Corporation Ltd (WBPDCL) which is implementing the project. The interest rate has been pegged at 8.5 per cent.

The project comprises adding a 250 MW unit to the Santaldih Thermal Power Plant of WBPDCL in Purulia district. STPP now has four units .

The REC was set up in 1969 with the primary objective of providing refinance assistance for rural electrification. However, of late, it has diversified into other related areas such as project financing.

In case of West Bengal, where the State Electricity Board had piled up debts of Rs 800 crore, the REC had stopped funding projects in West Bengal alongwith four other States.

As per an agreement between the REC, the WBSEB and the State power department, the loan has now been rescheduled and a settlement amount of Rs 705 crore has been arrived at. "Payment has already begun", sources said.

WBPDCL officials who had earlier mulled the equipment finding route for financing the project, are happy that REC finances would flow in, saying that they would appoint a consultant this month to work out the details and had the option now to choose between the domestic or the global tendering route.

The project has already received the necessary clearances, including the one from the National Airports Authority of India for chimney height.

More Stories on : Power | Other States

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
ISACA wing bags award

Opening the door for more goodies?
Devolution formula must reward States, says Jayalalithaa
IBRD to study Karnataka's development models
`Perception panel' to spruce up Bengal image
Recapture CIS markets, engineering exporters told
Machine tools sector too goes for outsourcing
Polluted Pampa crying for attention
English Indian Clays told to fix pollution problem
Rolling back of customs duty — Picture tube makers fear inverted duty structure
Chile keen on selling wine to India
`India will benefit more in the post-quota period'
Hong Kong woos Indian investment
`Romania will be happy to be a gateway'
Trauma care centres on highways mulled
Transco may buy 620 m.u. to meet power shortfall
CERC orders `free' transmission line availability
REC to fund Bengal thermal project expansion
Shipping cos make most of freight market boom
`More consolidation in steel sector imminent'
Scrap penalty for delay in service tax payment, says PHD Chamber
Karnataka Mayors' plea
JC Penney to increase textile outsourcing from India
Linking cotton yarn price with export `not correct', says SIMA
TT Services to launch Visa support services for New Zealand
Hyundai emerges as second biggest exporter
Centre plans stringent norms for food products — PFA Act amendment on cards
Global Hospitals to expand
Building expo in Delhi from Feb 18
`Duty sops to import copper cathodes may hit small units'
ISRO for info kiosks
KFCC threat to stop film production
MNC drug cos ready to swallow pill
Role of NGOs hailed
Centre gives nod for Coimbatore industrial cluster project
Power centre
Petronet Dahej plant to be commissioned on Feb 9
`Tex Spares 2004' to hold business meet on wind energy
Granite expo
Traditional products pull down H1 export growth
Duty-free credit entitlement certificate route norms relaxed — Service providers allowed to import `any' capital goods
Chhattisgarh paves way for pvt. role in tourism

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line