Power Finance Corporation Limited (PFC), as a Lead lender, in consortium with Rural Electrification Corporation (REC) and State Bank of India (SBI) participated in e-tendering process for funding of debt of Rs. 11067 crore of 3x660MW coals based thermal power station being executed by Neyveli Uttar Pradesh Power Limited (NUPPL) in Ghatampur tehsil, Kanpur Nagar, Uttar Pradesh. NUPPL has subsequently awarded LoA to the consortium of PFC, REC & SBI for providing financial assistance of Rs. 11067 crore for the above project and the lenders have given their consent.

NUPPL is a JV company of NLC India limited (NLC) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for supply of electric power in the state of Uttar Pradesh, India. NLC has an installed capacity of 4301 MW with thermal and wind power plants in Tamilnadu and Rajasthan.

With a proposed capacity of 3×660 MW, Ghatampur coal based thermal power station is being developed at an estimated project cost of Rs. 17237.80 crore to be funded in Debt-Equity ratio of 70:30. Out of total debt of Rs. 12067 crore, Rs. 11067 crore debts is funded by PFC led consortium. Balance debt is provided by Bank of India. The 3×660 MW project is expected to be commissioned by November 2021 and generate approximately 13969 Million Units of energy to meet the future power requirement of Uttar Pradesh.

The signing of the documents related to this loan arrangement took place at Puducherry on 31st December 2017 in the presence of Shri Susheel Kumar I.A.S., Secretary, Ministry of Coal, Shri Rajeev Sharma, CMD, Power Finance Corporation Ltd., Dr. Sarat Kumar Acharya, CMD, NLCIL & Chairman, NUPPL. Among others present were directors of NLCIL/NUPPL, CEO, CFO of NUPPL, senior officers of Consortium (Director (Finance), REC, Executive Director, PFC & CGM, SBI) and other delegates.

PFC has a long standing relationship with NLC and has sanctioned loans worth Rs. 7278 crore in the past for various existing units of New Neyveli and Tuticorin Thermal Power Projects. This upcoming thermal project is further expected to strengthen the relationship between these two entities.