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Home News Power Sector News DVC plans to raise Rs 2,000 crore from PFC, REC and SBI

DVC plans to raise Rs 2,000 crore from PFC, REC and SBI

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Power projectDamodar Valley Corporation (DVC) has decided to raise Rs 2,000 crore from the debt market in order to fund the first phase of the proposed 500 mw Bokaro-A super critical project. The company has already entered into talks with Power Finance Corporation (PFC), Rural Electrification Corporation (REC) as well as State Bank of India (SBI) and its associate banks for funding the project.

"We are in talks with various financial institutions including PFC, REC and SBI for financing the proposed Bokaro-A project. Financial closure is expected in the next couple of weeks," said a senior DVC official close to the development.

Incidentally DVC has recently decided on awarding a Rs 2,200 crore engineering and procurement contract (EPC) contract for Bokaro-A 500 mw super critical project to Bhel on a negotiated basis, bypassing the conventional bidding process which takes considerable time to select a contractor. The board approval will come on June 16, following which it will be awarded to Bhel.

The value of the contract for Bhel at Bokaro-A is likely to be about Rs 1,830 crore plus taxes which will touch Rs 2,200 crore, said sources in Bhel. Although this will be on an EPC basis, DVC has decided to build the coal and ash handling plant itself. DVC has decided to complete the project before completion of the 11th 5-year plan period.

DVC has a tight schedule for the project as it has committed 2,500 mw of additional power to Delhi Transmission Corporation (DTC) to cater to in-creased demand for power during the Commonwealth Games.

The power generator has decided to scrap the existing generating units at Bokaro-A and replace them with a single 500 mw unit. At present, three units of 45 mw are running at the location. Another unit with a 40 mw capacity has already been closed and the plant scrapped. Plant load factor (PLF) at these units are pathetic since they were set up in the 1950s. It has also attracted the wrath of Pollution Control Boards and we have decided to scrap them.

Source- Economic Times

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