PCF lends major share for Ultra Mega Power Projects

Gangtok, Nov 8 : Power Finance Corporation (PFC) of Sikkim has earmarked a major percentage of its asset base of Rs 70,000 crore for the Ultra Mega Power Projects (UMPP) which is soon to arrive in India.

In a press meet yesterday, PCF Chief Managing Director Satnam Singh said, ''We have decided to lend Rs 50,000 crore to the proposed power projects in the country and a large chunck of it will be for the UMPPs.'' ''There is a huge capacity of addition taking place in the country at 78,000 MW by the 11th five-year plan which will require investment by various financial institutions, including the PFC,'' Singh said who along with other PFC officials was here for a meeting with the state electricity utilities representatives from various parts of the country.

Singh said in order to increase the share of public sector companies in power generation, the PCF has introduced two new schemes of power loans for coming projects and restructured Accelerated Power Development & Reforms Programme (ARDRP).

''Power loans will be converted into grants by 50 per cent to states who address the power distribution and transmission losses by at least three per cent in five years and in case of special states like Sikkim, it will be 90 per cent conversion into grants if the target is achieved, Mr Singh further added.

When asked about Sikkim, Singh said the state government has expressed its willingness to go for about Rs 1,000 crore as power loan.

The state government will be sending its proposal to the PCF soon, he added.

Power loans worth Rs 23 crore had been sanctioned to Sikkim under the APDROP, Mr Singh informed, adding the loan will be repayable in 18 months time.

--UNI

(c) 2009 Published with permission from United News of India.
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