State-owned power producers SJVN Ltd on Wednesday said it has inked an initial pact with Power Finance Corporation (PFC) to get finance for its projects worth Rs 1.18 lakh crore.
"PFC and the company have signed a Memorandum of Understanding (MoU) for financial assistance to various diversified portfolio of projects, including majorly Renewable Energy projects and thermal generation projects to be set up at a total project cost of about Rs 1,18,826 crore," a BSE filing said.
The term loan financial assistance is tentatively proposed at 70% of the project cost, which may be increased for renewable energy projects as per project requirements, it stated.
In a separate statement, PFC said, "PFC and SJVN Ltd have signed an MoU for providing financial support to various projects, including massive Renewable Energy ventures (Solar, Hydro, and Pumped Storage) totalling 12,178 MW capacity, along with a 660 MW thermal generation project for an estimated project cost of approximately Rs 1,18,826 crore".
The MoU was signed by PFC Director (Commercial) Manoj Sharma and SJVN Director (Finance) Akhileshwar Singh, it stated.
PFC's financial support in the form of term loan is tentatively proposed to range from Rs 80,000 crore to Rs 90,000 crore, demonstrating a substantial commitment to the realisation of these vital projects.
Notably, these funds may be further increased to accommodate the specific requirements of the renewable energy projects, emphasising the adaptability of this partnership to evolving project needs.
This collaborative effort between PFC and SJVN underscores their shared commitment to fostering sustainable and clean energy solutions for India's future.
By facilitating the development of renewable energy and thermal generation projects on a large scale, both entities are poised to contribute significantly to India's energy security and environmental sustainability.
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