Power Finance Corporation said it has sanctioned Rs 9128 crore financial assistance to power utilities of Tamil Nadu.
A Loan Agreement was signed between PFC and the Power Utilities of Tamil Nadu to this effect.
The company sanctioned a term loan of Rs 5474 crore to Tamil Nadu Generation and Distribution Corporation Ltd’ (TANGEDCO) for setting up 2×800 mw coal-based Uppur power station in Ramanathapuram district and for upgrading Sholayar power house-I from 2×35 mw to 2×42 mw. The Uppur plant is expected to be commissioned by May 2021.
PFC has also sanctioned a financial assistance of Rs 3654 crore to Tamil Nadu Transmission Corporation Ltd (Tantransco) for strengthening of transmission network and establishing 765/400kV north Chennai pooling station at Ennore, Tiruvallur district. The station being is expected to be commissioned by June 2019 at estimated project cost of Rs 2866.75 crore.
The entire debt for the project is to be provided by PFC.
An in-principle sanction of project worth Rs 3125 crore for conversion of existing over head cable to underground cable in Tamil Nadu has also been handed-over to Tangedco and Tantransco officials.