NEW DELHI

Financial pact for M.P. power project

Staff Correspondent

BHOPAL: The Narmada Hydroelectric Development Corporation (NHDC) Limited, which is a joint venture of the National Hydroelectric Power Corporation (NHPC) and the Government of Madhya Pradesh, on Monday signed a loan agreement for Rs. 1350 crores with a consortium of 11banks for construction of the 520-MW Omkareshwar project.

Briefing journalists here in the State capital, the Chief Executive Director of NHDC, S.K. Dodeja, said that the loan agreement had been signed in the presence of the Chief Minister, Babulal Gaur.

He said that the Union Bank of India is their lead bank and a major part of the loan, that is Rs. 300 crores, would come from this bank.

The other banks in the consortium are Corporation Bank (Rs. 100 crores), Central Bank of India (Rs. 138 crores), Allahabad Bank (Rs. 150 crores), Oriental Bank of Commerce (Rs. 150 crores), Indian Overseas Bank (Rs. 50 crores), Canara Bank (Rs. 104 crores), Punjab National bank (Rs. 173 crores), United Bank of India (Rs. 75 crores), SIDBI (Rs. 35 crores), and Syndicate Bank (Rs. 75 crores).

Mr. Dodeja said that the completion cost of Omkareshwar project is estimated to be Rs. 2145 crores.

This would be met through equity contribution of Rs. 612.58 crores, shared equally by NHPC and Madhya Pradesh Government, besides the loan of Rs. 1350 crores and through the irrigation component to be funded by the State Government.

He said that NHDC has succeeded in arranging the loan from a consortium of banks at a very competitive rate of 7 per cent interest per annum.It is also without any guarantee from the State or the Central Government.

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