Power Finance Corporation (PFC), in a consortium with Rural Electrification Corporation (REC) and State Bank of India (SBI), have agreed to lend Rs110bn ($1.73bn) to India’s Neyveli Uttar Pradesh Power (NUPPL) for the construction of 1980MW coal-based thermal power plant in India.

The loan will be used by NUPPL, a joint venture between Neyveli Lignite Corporation (NLC) with 51% stake and Uttar Pradesh Rajya Vidyut Utpadan Nigam with 49% interest, for the construction of the planned thermal power station in Ghatampur, Uttar Pradesh, a state in India.

PFC was quoted by The Economic Times as saying: "The consortium participated in e-tendering process for funding of debt of the 3×660 mw power plant executed by NUPPL.

“NUPPL has subsequently awarded Letter of Award (LOA) to the consortium of PFC, REC and SBI for providing financial assistance of Rs110bn for the project and the lenders have given their consent.”

Power generated by the 3x660MW coal-based thermal power station, which is estimated to cost Rs172.37bn ($2.7bn), will be mainly supplied to Uttar Pradesh. It is expected to be commissioned by November 2021 and produce nearly 13969 million units of energy. 

In 2106, L&T-MHPS Boilers (LMB) had secured Rs38.6bn ($576.9m) contract from NUPPL to provide equipment for the 1980MW coal-based thermal power plant in the country’s northern state.

The contract scope also included steam generator and auxiliaries package for NUPP. LMB is a joint venture between Larsen & Toubro (L&T) and Japan’s Mitsubishi Hitachi Power Systems (MHPS).

The Ghatampur project’s unit I, II and III are scheduled to be commissioned in 52 months, 58 months and 64 months respectively from the start of construction work. The power plant will source coal from the Pachwara South coal block in Jharkhand.

Image: The proposed Ghatampur thermal power plant will source coal from the Pachwara South coal block in Jharkhand, India. Photo: courtesy of John Kasawa/ FreeDigitalPhotos.net.