Tuesday, November 10, 2009

Power Finance Corporation sanctions Rs. 23 cr for Sikkim

GANGTOK, November 10: State owned Power Finance Corporation (PFC) has earmarked a major percentage of its asset base of Rs. 70,000 crores for the ultra mega power rojects which will be coming up in the nation.We have decided to lend as much as Rs. 50,000 crores to the proposed power projects in the country and a large chunck of the lending willbe for the ultra mega power projects, said PCF Chief Managing DirectorSatnam Singh said yesterday evening in a press meet in Gangtok.

There is a huge capacity addition taking place in the country at 78,000 MW by the 11th five-year plan which will require investment by various financial institutions, including the PFC, said Singh who along with other PFC officials, was here for a meeting with the state electricity utilities representatives from various parts of the country.
Singh said that in order to increase the share of public sector companies in power generation, the PCF has introduced two new schemes – power loans against existing projects for coming projects and restructured Accelerated Power Development & Reforms Programme (ARDRP)under which performance based conversion of loans into grants is provided for.

Power loans will be converted into grants by 50 percent to States who address the power distribution and transmission losses by at least 3 percent in 5 years and in case of special States like Sikkim, it willbe 90 percent conversion into grants if the target is achieved, said the PCF CMD.

When asked about Sikkim, Singh said that the State government has expressed its willingness to go for about Rs. 1000 crores as powerloan. The State government will be sending its proposal to the PCF soon.

The CMD said that power loans worth Rs. 23 crores had been sanctioned of Sikkim under the APDROP for reducing their power transmission and distribution losses. The loan is repayable in 18 months time.

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