The Hindu : Andhra Pradesh News : PFC to fund Krishnapatnam thermal power station

Online edition of India's National Newspaper
Friday, Aug 08, 2008
ePaper | Mobile/PDA Version

Andhra Pradesh

Andhra Pradesh

PFC to fund Krishnapatnam thermal power station

T. Ramakrishnan

CHENNAI: The Andhra Pradesh Power Development Company and the Power Finance Corporation, a Nav Ratna company under the control of the Union Power Ministry, will sign loan documents at Hyderabad on Friday for funding the 1,600 megawatt (MW) Krishnapatnam thermal power station to be established about 25 km from Nellore town.

The total cost of the project is Rs. 7,949 crore, of which Rs. 4,785 crore will be provided by the PFC. For the remaining portion, the Power Development Company has tied up with KfW (German Development Bank) to the tune of Euro 281 million, according to Ajay Jain, Chairman and Managing Director of the Corporation.

Mr Jain told The Hindu over the phone that of the two units of 800 MW, the first unit would be commissioned by July 2012 and the next - December 2012.

A couple of weeks ago, the Congress president Sonia Gandhi inaugurated the work of the project at a function at Nellore.

While the KfW assistance is in the form of soft loan carrying nominal rates of interest, the PFC assistance will bear 11.5 per cent interest (post commercial operations of the proposed plant). Recently, the Bharat Heavy Electricals Limited (BHEL) has bagged the contract for supply of the steam generators with supercritical parameters.

An official of the PFC said that immediately after signing of the document, the Power Development Company could draw 15 per cent of the sanctioned amount.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh