Power Finance Corporation (PFC), the central PSU under Ministry of Power and India’s leading non-banking financial company (NBFC), today entered into an agreement with Narmada Basin Projects Co. Ltd. (NBPCL), a wholly-owned company of Govt. of Madhya Pradesh, to fund projects worth Rs.220 billion for 225 MW hydro-electric projects and multipurpose projects in the state of Madhya Pradesh.
The funds will be deployed by NBPCL for setting up hydroelectric projects of 225 MW and power components of 12 major multipurpose projects in the state. The MoU was signed on a virtual platform by Rajeev Sharma, CMD, PFC and ICP Keshari, Managing Director, NBPCL. The government of Madhya Pradesh had provided approval for the execution of these projects after conducting a pre-feasibility study. The disbursal of the amount will be linked to the execution of the projects.
The MoU will help PFC to actively partner with NBPCL and provide finance for hydro-electric plants totalling 225 MW along with power components of multipurpose projects as part of state government’s endeavor to implement twelve major multipurpose projects.
Some of the major multipurpose projects that will be financed under the MoU are Basaniya Multipurpose Project Dindori, Chinki Boras Multipurpose Project Narsinghpur Raisen Hoshangabad, Sakkar Pench Link Narsinghpur Chhindwara and Dudhi Project Chhindwara Hoshangabad.
PFC will consider the financial assistance to NBPCL based on due diligence and on mutually acceptable terms.