PFC, JK Bank to fund Baglihar Stage-II

Excelsior Correspondent

Chairman & Managing Director PFC Satnam Singh exchanging Loan Agreement with Managing Director JKSPDC Basharat Ahmad Dhar at New Delhi on Thursday.

NEW DELHI, Aug 23:  Jammu & Kashmir State Power Development Corporation has achieved the financial closure for implementation of 450 MW Baglihar -II HEP.
The financial closure for the project has been achieved in a record time and has coincided with commencement of project execution unlike Baglihar Stage first which took about 06 years for achieving financial closure
The debt component of the Project coming up at an estimated cost of Rs 3113.19 crore will be funded by Power Finance Corporation and J&K Bank to the extent of Rs 1679.23 crore and Rs 500 crore respectively with the balance requirement being met through State equity. Loan Agreement with Power Finance Corporation was exchanged between Satnam Singh, Chairman & Managing Director PFC and Basharat Ahmad Dhar, Managing Director JKSPDC at New Delhi today thus completing the process  of Agreement with J&K Bank having already been signed on 14th August 2012.
Various lending institutions had expressed their keenness to fund the project and in view of competitive terms and conditions offered by them Agreements were finally signed with PFC & JK Bank. The interest shown by lending institutions to fund various projects of JKSPDC which are in the pipeline is an encouraging sign for infrastructure development in the State particularly the Power Sector, a fact attributed to the improved credit worthiness of the J&K State Power Development Corporation and the congenial atmosphere for investment created by the Government headed by Omar Abdullah. The Project is targeted to be commissioned in 2015 and will generate about 1300 million units annually.

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