Bhubaneswar: OPGC expansion project of 2×660 MW thermal power plant (Unit 3&4) including development of captive coal mine and railway transportation system has taken a major leap with finalisation of the financing arrangement with Power Finance Corporation Ltd.(PFC) and Rural Electrification Ltd.(REC).
The funding of the above expansion project with an estimated total cost of Rs.11, 547 cr. is based on a Debt to Equity ratio of 75:25. The debt component of Rs.8660 crores has been agreed to be financed in the ratio of 50:50 by PFC and REC on a long term basis to be recovered over a period of 20 years.
The loan agreement with PFC and REC was executed by the MD OPGC Mr. Venkatachalam Kuppusami and the representatives of PFC and REC in a signing ceremony formally organised for the purpose at Bhubaneswar. The signing of the agreements took place in the august presence of the Hon’ble minister of Energy and I&PR Mr. Arun Kumar Sahu, Secretary Energy Mr. P.K. Jena, CMD PFC Mr. Satnam Singh and Director Finance REC Mr. Ajeet Agarwal and other senior officials and dignitaries of the state.
It may be mentioned here that with the help of the State Govt. various clearances and permits have been obtained for the above expansion projects and land acquisition for mines and exclusive railway corridor are under progress through IDCO.
Recently the project got the major boost with the grant of stage-I forest clearance and environment clearance for the captive mine. The evaluation of the EPC tendering for procurement of main plant equipments and award of erection thereof along with balance of plant and ancillary facilities is under progress. If project activities move as per schedule, the construction is expected to start in early 2013. It may be further mentioned that OPGC has already entered into a long term Power Purchase Agreement with GRIDCO for sale of 660MW power and applied for long term open access for direct sale of balance 660MW.