PFC to give Rs 13,000 cr for three AP Genco projects

The Power Finance Corporation has assured the State Government that it would extend additional funding of Rs 13,000 crore for three thermal power projects to be taken up by AP Genco.

AP Genco is seeking funding for expansion projects at Kothagudem and Vijayawada stations, and for a new plant’s expansion at Krishnapatnam.

Following a request by the State Chief Minister Mr. N. Kiran Kumar Reddy, PFC expressed its intent to provide funding, according to a statement from the Chief Minister’s Office.

Mr Satnam Singh, Chairman and Managing Director of PFC held parleys with the Chief Minister over issues related to the power sector.

During the meeting, the PFC Chairman agreed that the Corporation will provide Rs 13,000 crore to enable AP Genco take up expansion projects. The PFC has already sanctioned loan of up to Rs 15,525 crore to AP Genco for some of the ongoing projects.

The Chief Minister requested the PFC to reduce interest on loans extended to the State-owned utility from 12.5 per cent to 11 per cent, by bringing it on par with the base rates of banks. The PFC Chairman responded positively to the request, according to the statement.

As a part of PFC’s corporate social responsibility (CSR) initiative , its chairman presented a cheque of Rs 3.60 crore to the Chief Minister towards construction of houses damaged during floods in 2009. The unprecedented floods resulted in extensive damage to property in some districts of the State.

The State had sought support from the industry to tide over the crisis and help reconstruct houses for the poor.

In response, PFC had come forward to provide Rs 5 crore for construction of 400 houses at Rajole in Mahabubnagar. These houses will be ready by May 2012.

PFC has also provided Rs 1.8 crore for upgradation of 75 adult education centres and helped in providing solar lanterns in 36 villages.
Source: BL

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