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Home News Power Sector News PFC sanctions Rs 5500 crore loan for Uppur power project

PFC sanctions Rs 5500 crore loan for Uppur power project

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PFCPower Finance Corporation (PFC) has sanctioned Rs 5,474 crore as term loan to Tamil Nadu Generation and Distribution Company (Tangedco) for setting up two thermal power units of 800MW each at Uppur in Ramanathapuram district.

A formal agreement between Tangedco and PFC was signed in New Delhi a few days ago. Tangedco chairman M Saikumar and PFC chairman Rajeev Sharma signed the agreement. PFC has sanctioned a total of Rs 9,128 crore towards Uppur and upgrading Sholayar Power House-1 from 35MW to 42MW , said a senior Tangedco official.

The Uppur thermal project is being set up on 767.8 acres of land acquired from private owners of Uppur, Valamavoor and Thiruppalaikudi villages of Thiruvadanai taluk. Apart from this, Tangedco has nearly 227.36 acres of poromboke land.

Former chief minister J Jayalalithaa handed over the contract for the Uppur project to Bhel in 2016. Key equipment will be manufactured at BHEL's Trichy , Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam, and Bengaluru plants while the company's southern region will be responsible for civil works and erectioncommissioning of the equipment.

In August last year, the chief minister announced '4,126 crore to set up a 2x1500 MVA sub-station in Virudhunagar to transmit power generated from the two units at Uppur. They are expected to be commissioned in 2021and coal for the units will be sourced from Tuticorin port through trains to Manamadurai and Tirumayam stations in Ramanathapuram district.

This is the second time Tangedco has received sanction for setting up 800MW thermal power units. On January 31, the Rural Electrification Corporation (REC) sanctioned '6,890 crore to Tangedco for setting up a 800MW unit in North Chennai and also to set up two substations of 765 KV , 400 KV capacity in and around Chennai. The amount sanctioned is in the form of loan repayable in 20 years.

Soon after the Uppur project was announced and Tan gedco started acquiring land, many farmers and fishermen went to court alleging threat to livelihood. "In some cases, we resolved the issues with farmers by paying them compensation. Some cases are pending in local courts which will be resolved soon," said a senior Tangedco official.

A cheque of '114 crore was handed over to Tangedco by PFC for Ennore SEZ (2x660 MW) for which PFC had sanctioned term loan of '7,668.90 crore. In addition, a cheque of '500 crore was handed over to Tangedco as short term support. PFC has so far sanctioned Rs 48,500 crore and disbursed Rs 29,500 crore towards various projects in generation, transmission and distribution sector in Tamil Nadu.The state is PFC's second largest client in terms of loan assets as on December last year.

Source- TOI


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