Rural Electrification Corp (REC) will provide Rs 14,000 crore debt to set up 2,400 MW thermal power plant of power giant NTPC's arm Patratu Vidyut Utpadan Nigam Ltd (PVUNL) in Jharkhand.
"The REC and PVUNL signed a loan agreement for establishing 3x800 MW Patratu Super Thermal Power Project Phase-I in Jharkhand," a statement by REC said.
The project cost of Rs 18,668 crore is funded in debt: equity ratio of 75:25 and Rs 14,000 crore (entire debt component of project) is sanctioned by REC as sole lender for the project.
PVUNL is a subsidiary of NTPC holding 74 per cent stake in the company and 26 per cent of stake is held by Jharkhand Bijli Vitran Nigam Lid (JBVNL), the discom utility of Jharkhand.
The loan agreement was exchanged between Ajeet Agarwal, Director Finance, REC and Kulamani Biswal, Chairman, PVUNL.
The CMD of REC, P V Ramesh and the CMD of NTPC, Gurdeep Singh, along with senior management of both the organisations were also present at the event.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)