HPGCL makes loan arrangements for power plant in Hisar

CHANDIGARH:: In order to ensure timely construction and commissioning of a 1200 MW thermal plant at Hisar, the Haryana Power Generation Corporation Limited (HPGCL) has facilitated loan arrangements from various government agencies.

The agencies that offered financial assistance include Rural Electrification Corporation of India Ltd (REC), Power Finance Corporation Ltd (PFC) and the Nationl Capital Region Planning Board (NCRPB).

Ashok Lavasa, Financial Commissioner and Principal Secretary (Power), Haryana said that all these agencies provide funds and loan assistance to the power boards and utilities for setting up new generation units.

He said that it was for the first time that the NCRPB had sanctioned a loan of Rs 500 crore at an interest rate of 5.5 per cent per annum.

The loan of Rs 135 crore sanctioned for the year 2006-07 has already been drawn for the purpose.

The balance would be drawn in two tranches, he said. Besides, the REC had sanctioned a loan of Rs 1536.03 crore with a repayment period of 15 years and Commercial Operation Date (COD) in 60 quarterly installments. Similarly, Rs 1453 crore had been sanctioned by the Power Finance Corporation with a repayment period of 15 years after a 38 months moratorium period.

The total loan period will be 18 years. This project had been included by the Ministry of Power in the capacity addition programme for 11th plan.