MUKERIAN PROJECT - PSPCL to raise R7,000-cr loan
Vishal Rambani
PATIALA:

The cash-strapped Punjab State Power Corporation Ltd (PSPCL) will raise a loan of Rs 7,000 crore for its proposed 1,320-MW Mukerian thermal power plant under public sector.
The Power Finance Corporation (PFC), a Central undertaking, has agreed to finance 90% of the cost of the plant. The remaining funds will be raised either by the state government or PSPCL through bank loans, PSPCL told the government in a recent communication.

Replying to the points raised by the government, a letter issued by the office of the PSPCL chairman-cum-managing director (CMD) said while the PFC had agreed to provide 90% of the funds, the remaining cost could either be met by way of equity contribution by the Punjab government or through long-term loans raised by the PSPCL. The letter said the government could pay the sum in instalments of Rs 175 crore per year over a period of four years.

Talking to HT , CMD KD Chaudhary confirmed that the financial model had been worked out and sent to the government for final approval. “We have requested the government to contribute 10% share or the PSPCL would raise a loan for it,“ he said. Chaudhary said a PSPCL team had identified two sites for the project, which would start as soon as the government grants the approval.