Power Finance Corp gives Rs 1,351 cr financial aid to Bihar Grid Company
State-run Power Finance Corp (PFC) today said it has sanctioned a financial assistance of Rs 1,350.69 crore to Bihar Grid Company for a transmission line project. Bihar Grid Company Ltd (BGCL) is a joint venture of Power Grid Corporation of India and Bihar State Power (Holding) Co Ltd.
The amount has been sanctioned for construction of 16400 kV, 220 kV and 132 kV transmission lines, 4 associated substations and 7 line bay extension works in Bihar, a PFC statement said.
The estimated cost of the project is Rs 1,688.36 crore which is proposed to be funded in Debt-Equity ratio of 80:20. The project is expected to be commissioned by July 2021.
According to the statement, the loan agreements were signed between PFC and BGCL officials here in presence of C Gangopadhyay, Director (Projects); N B Gupta, Director (Finance), PFC, and other senior officials.
The PFC has a long-standing relationship with Bihar state utilities and Power Grid and this upcoming transmission project is further expected to strengthen the bond as the entire debt component has been sanctioned by PFC as a sole lender, it added.