PFC grants ₹9,128 cr. for Uppur power plant

₹5,474 crore will be term loan; the plant will generate 11,228 million units a year

Tamil Nadu Generation and Distribution Corporation (Tangedco) will set up 1,600 MW (2 x 800 MW) supercritical thermal power plant at Uppur in Ramanathapuram district with financial assistance from Power Finance Corporation (PFC).

PFC had sanctioned a term loan of ₹5,474 crore to Tangedco for the Uppur thermal power project. The power project is expected to be completed by May 2021 and will generate energy of about 11,228 million units a year, an press release from PFC said.

A sum for renovation

Part of the loan would be utilised for renovation, modernisation and upgrade of Tangedco’s hydropower project, Sholayar Power House-1 to 2x42 MW from 2x35 MW.

PFC has granted funds to the tune of ₹3,654 crore to Tantransco for strengthening the transmission infrastructure.

The major portion of the fund would go for establishing 765/400 kV GIS based North Chennai Pooling Station at Ennore, expected to be commissioned by June 2019 at a project cost of ₹2,866.75 crore, with entire loan coming from PFC.

Tamil Nadu is the second biggest client for PFC. Earlier this year, Rural Electrification Corporation (REC) had sanctioned ₹6,890 crore to Tangedco to set up the power plant and two substations of 765 kV and 400 kV in and around Chennai.