NTPL Signed Agreement with a Group of Banks for 1000-MW Power Project

A group of various banks agreed to loan 937 crore Rupees for 1000-MW NTPL power project. An agreement was signed on 18 February 2013.

Feb 19, 2013 10:13 IST
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Neyveli Lignite Corporation (NLC)A group of various banks agreed to loan 937 crore Rupees for 1000-MW NTPL power project. NTPL power project is the joint venture of Tamil Nadu Power Generation and Distribution Corporation as well as Neyveli Lignite Corporation (NLC). The project will come up at Tuticorin.

NLC Director (Finance) as well as the Bank of India Deputy General Manager (Mumbai) signed an agreement on 18 February 2013. The estimated cost of the project would be 4909.54 crore Rupees having debt-equity ratio of 70:30.

The group of various banks included Indian Bank, the Central Bank of India as well as the Bank of India. In the meanwhile, it is important to note that NTPL had tied up with another group of banks earlier. The group was led by Bank of Baroda. NTPL had tied up with other group of banks for the debt which amounted to 2500 crore Rupees.

After the pact was signed, NTPL sealed the debt component for this project which amounted to 3437 crore Rupees in all.

As of now, 70 percent of the overall project was completed. First unit of the 500 MW would go on stream in December 2013. The second unit, which would have almost similar capability, will start operating in March 2014.
For the fuel, NTPL signed the deal with Mahanadhi Coal Fields Ltd, which is a subsidiary of Coal India Ltd.

The power which would be generated from this project will be shared among the states of Puducherry, Kerala, Karnataka and Tamil Nadu. For this purpose, power purchase agreements were signed with Tangedco as well as respective State Electricity Boards.

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