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State Bank of India has decided to lend Rs 1,400 crore to Damodar Valley Corporation (DVC) to part-fund its 500 MW Bokaro Thermal Power Station (A) Project. SBI’s associate banks have agreed to fund Rs 1,000 crore for the project.
The project was envisaged at an estimated cost of Rs 3,500 crore and would have a debt-equity ratio of 70:30. It would replace the old and abandoned 247 MW Thermal Power Plant which was built in 1953.
The Bokaro Unit is expected to be commissioned in April 2014.
Fuel for the project will come from Central Coalfields Ltd and the power generated will be fed to the national grid.
DVC has signed Power Purchase Agreement (PPA) with Punjab State Electricity Board for supply of 200 MW of power while the balance power will be consumed in the State of Jharkhand.
While DVC’s power generation from old thermal plants is 2210 MW, it has commissioned new thermal plants with substantial additional capacity of 3500 MW so far. The Corporation is expected to make further capacity addition of 1250 MW during the financial year 2012-13.
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