SBI to fund DVC’s Thermal Power Plant in Bokaro

State Bank of India will provide fund of Rs 1400 crore to Damodar Valley Corporation for their upcoming 500 MW Power Plant in Bokaro.

State Bank of India has agreed to lend Rs 1,400 crore to Damodar Valley Corporation (DVC) to part-fund its 500 mw Bokaro thermal power station (A) project,” a bank release said here, adding SBI’s associate banks will lend Rs 1,000 crore for this purpose.

The thermal unit, which is likely to be commissioned next April, will be set up at an estimated cost of Rs 3,500 crore with a debt-equity ratio of 70:30. Referring to contentious coal supply and power purchase agreement, the release said fuel will come from the Central Coalfields and the power generated will be fed to the National Grid.

“DVC has signed a power purchase agreement with the Punjab State Electricity Board to supply 200 mw, while the rest will be consumed in Jharkhand,” the release said.

The power generation from old thermal plants of DVC stands at 2,210 mw and it has commissioned new thermal plants with additional capacity of 3,500 mw so far. The Corporation is expected to make further capacity addition of 1,250 mw during this fiscal