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OPGC signs financial tie up for Rs.11,547 cr expansion project

Posted on Nov 23, 05:58PM | UNI

The Odisha Power Generation Corporation(OPGC), a joint venture of AES company and the Odisha Government, today acheived a major milestone in its expansion project by signing financial tie up with the Power Finance Corporation(PFC) and the Rural Electrification Limited(REL).

The funding for the expansion project of 2X660 MW thermal power plant at an estimated total cost of Rs.11,547 crore was based on a Debt to Equity ratio of 75:25.

The debt component of Rs.8660 crore has been agreed to be financed in the ratio of 50:50 by the PFC and the REC on a long term to be recovered over a period of 20 years.

The loan agreement with the PFC and the REC was executed by the OPGC Manangig Director Venkalachalam in presence of the PFC CMD Satnam Singh and REC Director Finance Ajeet Agarwal in presence of Odisha Energy Minister Arun Sahu at a simple fuinction here.

Speaking on the occasion,OPGC MD Venkatachalam said the first two units( 2X 220 MW) were commissioned in 1994-1996 and the dream for the expansion of third and fourth units of 660 MW each started after the Odisha Cabinet approved the proposal in 2009.

He said the expansion project got the major boost recently with the grant of stage I forest clearace and environment clearance for the captive mines.

The OPGC had already entered into a long term power purchase agreement with the GRIDCO for sale of 660 MW of power and applied for long term open access for direct sale of balance 660 MW of power.