There may be some more government jobs in Uttar Pradesh coming very soon after it was announced recently that a power plant there would be receiving a loan of Rs. 11,067 crore. Neyveli Lignite Corporation is the owner of a 1980 MW thermal power station in Uttar Pradesh that runs on coal. A consortium of State Bank of India, Power Finance Corporation Limited, and Rural Electrification Corporation are lending this money to pay the debt of the power plant. In return, Neyveli Uttar Pradesh Power Limited has awarded the consortium of these companies with a LoA.
Neyveli Uttar Pradesh Power Limited was established as the result of a joint venture between Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited and Neyveli Lignite Corporation. The latter has a 4301 MW installation capacity and has both wind power plants and thermal power plants in the Indian states of Rajasthan and Tamil Nadu, according to reports of The Economic Times. Their latest power plant in Ghatampur, Uttar Pradesh is going to cost around Rs. 17,237.80 crore for its development. Its funding will be based on a debt to equity ratio of 70:30.
The consortium of Power Finance Corporation Limited is paying Rs. 11,067 crore of the total Rs. 12,067 crore debt. The Bank of India is paying for the remainder of the debt. This development project is expected to begin no later than November 2021. Due to the increasing power demands of Uttar Pradesh, this new power plant is expected to produce 13,969 million energy units. This is expected to be economically beneficial to the state as it will help more people and businesses function there.
Previously, Neyveli Lignite Corporation has received sanctioned loans from Power Finance Corporation in the amount of Rs. 7,278 crore. This helped cover a variety of thermal power station projects in Tuticorin and New Neyveli.