New Delhi (NVI): The state run Power Finance Corporation Ltd (PFC) and REC Ltd has signed a MoU with Kholongchhu Hydro Energy Ltd (KHEL) to extend a loan of Rs 4,058 crore for 600 megawatt hydro electric project in Bhutan.
The Memorandum of Understanding was signed in the presence of R S Dhillon CMD PFC, Sanjay Malhotra CMD REC, N L Sharma, CMD, SJVNL and Dasho Yeshi Wangdi, Chairman KHEL.
Taking to Twitter, PFC India wrote, “PFC along with REC Ltd. signed a MoU with Kholongchhu Hydro Energy Ltd (KHEL) for extending a Term Loan of Rs 4058 Crore for 600 MW Hydro Electric Project at Trashi Yangtse, Bhutan.”
PFC along with REC Ltd. signed a MoUwith Kholongchhu Hydro Energy Ltd (KHEL) for extending a Term Loan of Rs.4058 Crore for 600 MW Hydro Electric Project at Trashi Yangtse, Bhutan.#fundingforabrightertomorrow pic.twitter.com/Qj0LxxCH3O
— Power Finance Corp. (@pfclindia) March 11, 2021
In series of tweet, PFC said that the project is proposed to be funded in a debt-equity ratio of 70:30 and the term loan of Rs 4,058 crore shall be shared by PFC and REC in equal proportion.
“Apart from PFC and REC, Rs 400 crore is also proposed to be arranged from Bank of Bhutan (Rs 200 Crore) & NPPF, Bhutan (Rs 200 Crore),” PFC tweeted.
The project is proposed to be funded in a debt-equity ratio of 70:30 and the Term loan of Rs.4058 Crore shall be shared by PFC and REC in equal proportion. Apart from PFC and REC, Rs.400 crore is proposed to be arranged from Bank of Bhutan and NPPF, Bhutan
— Power Finance Corp. (@pfclindia) March 11, 2021
Moreover, KHEL, a Joint Venture (JV) between India’ state run SJVN Ltd. and Bhutan government’ Druk Green Power Corporation Ltd is executing the project.
This is the first project being executed in the joint venture model in Bhutan and expected to be commissioned in financial year 2025-26, which will generate about 2,569 MegaUnit (MU) energy.
PK Singh, Director (Commercial) & Addl Charge Director (Projects), PFC, Parminder Chopra, Director (Finance), PFC, G S Patra, Executive Director, PFC along with other senior officers were also virtually present at the MoU signing event.
However, the hydropower sector is the flagship area of India-Bhutan bilateral cooperation and this hydroelectric project by PFC will be beneficial in strengthening the relationship between the two countries, the reports said.
-RJV
