Chennai, Dec 31 (PTI) Public sector NLC India Ltd today said it has achieved financial closure for its 3×660 MW project in Uttar Pradesh with loan arrangement of Rs 11,067 crore. Also Read - Tamil Nadu Election 2021: DMK Likely to Allot 25 Seats to Congress, Final Pack to be Inked Today

The Tamil Nadu-based company is setting up new power project, totalling 1,980 MW under Joint Venture NLCIL-UPRVUNL (Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd) with share holding of 51:49 respectively. Also Read - AIADMK Seals Poll Deal With BJP For Tamil Nadu Election, Allots Kanyakumari LS Seat, 20 MLA Segments

The project is located in Ghatampur in Uttar Pradesh and project activities were on in full swing, the company said in a statement, adding that an expenditure of Rs 1,192.29 crore has been incurred so far. Also Read - Unable to Break Open ATM, Robbers Steal The Whole Machine in Tamil Nadu's Tiruppur

The signing of documents relating to the loan arrangement took place today in Puducherry in the presence of Coal Ministry, Secretary, Susheel Kumar, NLCIL Chairman and Managing Director, Sarat Kumar Acharya, Power Finance Corporation, Chairman and Managing Director, Rajeev Sharma.

NLC India Ltd has agreed to the loan arrangment of Rs 11,067 crore with consortium led by Power Finance Corporation, including State Bank of India, Rural Electrification Corporation Ltd.

“The sanctioned project cost is Rs 17,237.80 crore and is planned to be funded with a debt equity ratio of 70:30”, the statement said.

The loan arrangement for the project has been made through a transparent open tendering process, giving advantage of competitive rate and is expected to result in savings of more than Rs 700 crore in project cost, it said.

This is published unedited from the PTI feed.