Power Finance ready to bankroll SJVN projects worth Rs 1.18 lakh crore

  • IANS
  • Stock Market News
Power Finance ready to bankroll SJVN projects worth Rs 1.18 lakh crore
Credit: © Reuters.

New Delhi, Sep 20 (IANS) State-owned power producer SJVN (NS: SJVN ) Ltd has signed an MoU with Power Finance (NS: PWFC ) Corporation (PFC) for loans to finance for its projects worth Rs 1.18 lakh crore. "PFC and the company have signed a Memorandum of Understanding (MoU) for financial assistance to various diversified portfolio of projects, including majorly Renewable Energy projects and thermal generation projects to be set up at a total project cost of about Rs 1,18,826 crore," the SJVN informed the BSE on Wednesday.

The term loan financial assistance is tentatively proposed at 70 per cent of the project cost, which may be increased for renewable energy projects as per project requirements, it stated.

SJVN shares jumped 9.31 per cent to a record Rs 83.69 after the announcement, taking the company’s market cap to Rs 32,491 crore.

In a separate statement, PFC said: "PFC and SJVN Ltd have signed an MoU for providing financial support to various projects, including massive Renewable Energy ventures (Solar, Hydro, and Pumped Storage) totalling 12,178 MW capacity, along with a 660 MW thermal generation project for an estimated project cost of approximately Rs 1,18,826 crore."

The MoU was signed by PFC Director, Commercial, Manoj Sharma and SJVN Director, Finance, Akhileshwar Singh, it stated.

PFC's financial support in the form of term loan is tentatively proposed to range from Rs 80,000 crore to Rs 90,000 crore, demonstrating a substantial commitment to the realisation of these vital projects.

--IANS

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