PFC terms for loan to Sitammasagar project

The Power Finance Corporation (PFC) has stipulated conditions such as getting approvals and clearance for getting disbursement of loan beyond 60% of the sanction of ₹3,426.25 crore for Sitammasagar multi-purpose project across the Godavari in Bhadradri-Kothagudem district.

Proposed 200 metres downstream of the Dummugudem anicut, the Sitammasagar project is aimed at irrigating the gap ayacut of Sita Rama lift irrigation scheme. The financing agency has recently modified certain conditions for the loan sanction and were approved by the State government on Friday.

As per the modified conditions of the loan, the Telangana State Water Resources Infrastructure Development Corporation (TSWRIDCL), the borrowing agency, is required to comply with the conditions stipulated by PFC to get the disbursement of the loan beyond 60%.

The PFC wants the borrower to submit approvals/clearance obtained for Sita Rama Lift Irrigation Project as they are applicable to Sitammasagar multi-purpose project and that separate approvals for Sitammasagar are not required. In case separate approvals/clearances are required for Sitammasagar, the same shall be obtained and submitted to PFC.

In the event of stoppage of works due to unavailability of any clearance and approval, PFC would have the unconditional right to recall the loan and stop disbursement without notice.

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Printable version | Sep 24, 2021 3:21:57 PM | https://www.thehindu.com/news/cities/Hyderabad/pfc-terms-for-loan-to-sitammasagar/article35544296.ece

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