PFC in talks with NPCIL for lending Rs 12K cr for power projects

NEW DELHI: State-run lending agency Power Finance Corp is in advanced talks with Nuclear Power Corporation of India for lending Rs 12,000 crore to set up two atomic plants in Gujarat and Rajasthan with a total capacity of 2,800 MW.

Nuclear Power Corporation of India (NPCIL) is building two units of 700 MW each at Kakrapur atomic plant in Gujarat and Rajasthan atomic power plant.

"We are talking to them (NPCIL). We have to decide whether we would fund these projects over 15 years, the way we do in thermal projects", CMD PFC Satnam Singh told reporters here.

NPCIL is expanding its operations and therefore requires capital infusion.

"NPCIL was earlier a cash rich company...now they are seeking funds from lending agencies like us for their projects," Singh said.

PFC and NPCIL signed a Memorandum of Understanding in October, 2010, for offering financial assistance to NPCIL for its new power projects as well as renovation and refurbishment of life extension projects.

Meanwhile, PFC would issue tax-free bonds to raise Rs 5,000 crore of the total borrowing target of Rs 30,000 crore in the current financial year for funding power projects.

"We would borrow Rs 30,000 crore this fiscal...through tax-free bonds, infrastructure bonds and other means," Singh added.