Power Finance Corp gives Rs 9,000 cr loan to Tamil Nadu utilities

New Delhi, March 20 : State-run Power Finance Corporation (PFC) said on Monday that it has sanctioned Rs 9,128 crore in financial assistance to power and transmission utilities in Tamil Nadu.

PFC has sanctioned "a term loan of Rs 5,474 crore to Tamil Nadu Generation and Distribution Corp (TANGEDCO) for setting up 2×800 MW coal-based 'Uppur TPS' (Thermal Power Station) using super-critical technology in Ramanathapuram district and for renovation, modernisation and uprating of Sholayar Power House-I from 2×35 MW to 2×42 MW." 

The Uppur Thermal Power project is expected to be commissioned by May 2021 and will generate around 11,228 million units of energy per annum to cater to the future power needs of Tamil Nadu. 

PFC said it has also sanctioned a loan of Rs 3,654 crore to Tamil Nadu Transmission Corporation (TANTRANSCO) for strengthening the power transmission network and for establishing a 765/400 kV GIS (Gas Insulated Switchgear)- based north Chennai Pooling Station at Ennore in Tiruvallur district of Tamil Nadu.

The North Chennai Pooling Station, estimated to cost Rs 2,866.75 crore, is expected to be commissioned by June 2019. 

The entire debt for the project is to be provided by PFC. The loan agreement for these projects were executed last week. 

PFC also said that it has handed over to TANGEDCO and TANTRANSCO, the in-principle sanction of Rs 3,125 crore for the project of conversion of existing Over Head (OH) to Under Ground (UG) cable in Tamil Nadu.