State-run Power Finance Corp has announced that it has sanctioned financial assistance of INR27.04 billion (US$405 million) for West Bengal`s first super critical thermal power project located in Murshidabad district.
The company said in a statement:
"PFC, a Non-Banking Financial Company (NBFC) in power sector, has sanctioned a term loan of INR27,038.8 billion (US$405 million) to West Bengal Power Development Corporation Ltd (WBPDCL) for construction of Unit 5 (1 X 660 MW) under phase III of Sagardighi Thermal Power Station in Murshidabad."
The 660 MW Sagardighi Unit 5 is the first super critical thermal power plant being developed in the state by WBPDCL, which is a company owned by the West Bengal government for generation and supply of electric power, and it is expected to be commissioned by October 2020 at an estimated cost of INR38.6269 billion (US$578 million).
Approximately 4,209 million units of energy will have to be generated to meet the future power requirement of West Bengal. The project is proposed to be funded entirely by PFC in the debt equity ratio of 70:30.
State government officials and utilities and senior management of PFC were present during the signing of the loan agreement between PFC and WBPDCL officials in Kolkata.
PFC has a long standing relationship with WBPDCL and has sanctioned loans worth INR82.90 billion (US$1.24 billion) for various existing units of Kolaghat, Sagardighi, Santaldih and Bakreswar thermal power projects.