By: Vijay Kumar Verma, Group Editor-ICN World
SHIMLA : March 17, 2021 Agreement for Term Loan of Rs 8448.46 Crore for 1320 MW Buxar Thermal Power Project at Chausa, Bihar was signed between SJVN Thermal Pvt. Limited (STPL), a wholly owned subsidiary of SJVN, and the consortium of lending Banks & Financial Institution (FI) in a glittering ceremony at Patna today.
The Loan agreement was inked between the parties in the presence Nand Lal Sharma, Chairman & Managing Director, SJVN. The ceremony was attended by Smt Geeta Kapur, Director (Personnel), A. K. Singh, Director (Finance), Sushil Sharma, Director (Electrical) and Sanjeev Sood, CEO, STPL.
S L Sharma, Chief Finance Officer, signed the agreement on behalf of STPL with Consortium Banks/FIs, which included State Bank of India, Canara Bank and IIFCL. SBI Capital Markets Ltd. was the sole financial advisor and debt arranger to the company for this transaction. Signing of the Loan agreement paves way for funding of the construction activities in addition to equity being infused by the promoter.
Addressing the gathering on this occasion Nand Lal Sharma, Chairman & Managing Director, SJVN highlighted the need of Power for overall development of the Nation and contribution of SJVN on this front. He said that with an installed capacity of 2016.5 MW and an ambitious plan to add 25000 MW to its portfolio by 2040, SJVN has emerged as a major power player in the country. He further told that with the commissioning of 1320 MW Buxar Thermal Power Project in June 2023, power deficit of Bihar will be met to a large extent and shall also bring about remarkable improvement in the socio-economic development of the people. Sharma expressed thanks for cooperation and support received from the State Government in the execution of the Project and thanked Chief Minister of Bihar and State Government officials for the same. Sharma also expressed his gratitude towards the consortium banks for reposing their faith in SJVN and extending term loan for the Buxar Project. Sanjeev Sood, CEO, STPL assured that the Project will be completed as envisaged in June 2023.
Buxar Thermal Power Project was awarded to SJVN for execution by Government of Bihar. EPC contract of project stands awarded to M/s L&T in June 2019 and work in all components of the project is going on in full swing. The project will generate 9828 MU of power annually. As per the power purchase agreement with Bihar Government 85% of the power generated will be given to Bihar state and 15% will be sold to other power purchasers at Bus Bar rate. The project will generate employment opportunities, promote infrastructure development and herald a new era of socio-economic prosperity in the Project area and in the entire State of Bihar