SJVN Thermal Signs Loan Agreement with PFC & REC
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SHIMLA: 19th September, 2022
ln the august presence of Sh. Nand Lal Sharma, CMD, SJVN Ltd. and Sh. Ravinder Singh Dhillon, CMD, PFC a loan agreement amongst SJVN Thermal Pvt Ltd (STPL), PFC & REC for financing the debt component amounting to Rs.8520.92 Crore for 1320 MW Buxar Thermal Power Project located at Chausa, Buxar district of Bihar, in a glittering ceremony at Delhi. On the occasion Geeta Kapoor, Director (Personnel), A.K. Singh, Director (Fin.) & Sh. Sushil Sharma, Director (Electrical), SJVN Ltd., Ajay Choudhary, Director (Fin), REC, Vijay Kumar Singh, Director (T), REC, Smt. Parminder Chopra, Director (Fin.), PFC, Sh. Rajiv Ranjan Jha, Director (P), PFC Sh. Manoj Sharma, Director (C). PFC and Sh. Manoj Kumar, CEO and Sh. Manoj Kumar, CFO, STPL were present.
Addressing the gathering on this occasion, Sh. Nand Lal Sharma, CMD, SJVN highlighted the need of power for overall development of the nation and contribution of SJVN in this regard. He said that with an installed capacity of 2016.5 MW and an ambition plan to add 50000 MW to its portfolio by 2040, SJVN has emerged as a major power player in the country. Further, he added that with the commissioning of 1320 MW Buxar Thermal Power project in June 2023, power deficit of Bihar will be met to a large extent and bring about a remarkable improvement in socio-economic status of the people of the State. While thanking Bihar Govt. and District Administration for their sustained support to the project, Sh. Sharma also expressed his gratitude towards PFC & REC for reposing their faith in SJVN and extending their support by funding debt component of the project.
Initially a MoU for financing the term loan for BTPP was signed amongst SJVN, PFC & REC on 26th November 2O2O but agreement was not signed owing to higher rate of interest. Currently, there is rising trend in the debt market on account of continual increase of the REPO rate by RBI to control the inflation. Subsequently, the matter regarding refinancing of Term Loan was taken up with PFC & REC for better rate & terms, after detail discussions and negotiations, eventually they have offered a liberal interest rate of 8.60% per annum (inclusive of spread) for financing of Rs.8520.92 Crore. Accordingly, STPL decided for swapping of existing debt, which will result in significant saving of around Rs.174 Cr. over the loan period on account of interest payment by STPL as per the current market scenario. This will also result in cheaper electricity to consumers of STPL.
1320 MW Buxar Thermal Power Project allocated by Bihar Govt. on its commissioning will generate 9828 MU of power annually. As per the Power Purchase Agreement with Bihar Govt., 85% of the power generated from the project will be supplied to Bihar State and 15% to be sold at Bus Bar rate to other power purchasers.
