The Power Finance Corporation (PFC), an undertaking of the Union government, has sanctioned around Rs. 2,500 crore for the additional unit of 600 megawatts at the Ennore Thermal Power Station.
In its communication sent to the Tamil Nadu Electricity Board last month, the PFC said that it would provide a loan of Rs. 2,509.16 crore against the total estimated project cost of Rs. 3,136.45 crore.
The Board will take care of the remaining amount, says an official of the TNEB.
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In another communication, the Corporation informed the Board that it agreed to the request of TNEB for charging interest rate for the project at part with the rate applicable to a category ‘A' government sector borrower. Till now, TNEB was regarded as a category ‘B' borrower. In view of the ongoing restructuring process of the Board and the filing of annual revenue requirements by the TNEB with the Tamil Nadu Electricity Regulatory Commission, the PFC accepted the Board's request, according to an official of the Union government undertaking. At present, the interest rate offered to the TNEB for this project is 11 per cent per annum.