State-owned Power Finance Corp today said it has sanctioned Rs 9,128 crore in financial assistance to power units in Tamil Nadu.
PFC said in a statement that it has sanctioned “a term loan of Rs 5,474 crore to ‘Tamil Nadu Generation & Distribution Corporation Ltd’ (TANGEDCO) for setting up a 2x800 MW coal-based ‘UPPUR TPS’ using super-critical technology in Ramanathapuram district and for renovation, modernisation and uprating of the Sholayar Power House-I from 2x35 MW to 2x42 MW“.
The Uppur Thermal Power project is expected to be commissioned by May 2021 and will generate energy of approximately 11,228 million units per annum, to meet the future power requirement of Tamil Nadu.
PFC has also sanctioned financial assistance of Rs 3,654 crore to ‘Tamil Nadu Transmission Corporation Ltd’ (TANTRANSCO) to strengthen their power transmission network and also to establish a 765/400kV GIS-based North Chennai Pooling Station at Ennore, Tiruvallur district in Tamil Nadu, it said.
The North Chennai Pooling Station being developed by TANTRANSCO is expected to be commissioned by June 2019 at an estimated project cost of Rs 2,866.75 crore.
The entire debt for the project is to be provided by PFC.
The loan agreement for the above projects was executed between PFC and TANGEDCO/TANTRANSCO officials on March 16.
Besides, in-principle sanction of project worth Rs 3,125 crore for conversion of existing overhead (OH) to underground (UG) cable in Tamil Nadu were also handed over to TANGEDCO/ TANTRANSCO officials.
“A cheque of Rs 114 crore was handed over for Ennore SEZ (2x660 MW coal-based Super Critical TPP) for which PFC had sanctioned a term loan of Rs 7,668.90 crore,” it said.
In addition, a cheque of Rs 500 crore was also handed over to TANGEDCO towards short-term support.
PFC said it has a long-standing relationship with Tamil Nadu with a cumulative sanction of Rs 48,500 crore and disbursement of Rs 29,500 crore towards various projects in the generation, transmission and distribution sector.
The state is PFC’s second largest client in terms of loan assets as on December 31, 2016.