PFC to Finance Hydroelectric Projects Worth Rs 22,000 Crore in Madhya Pradesh

The Power Finance Corporation (PFC) has announced that it will finance 225 MW hydroelectric and other multiple purpose projects worth Rs 22,000 crore in Madhya Pradesh.

“PFC entered into an agreement with Narmada Basin Projects Company Ltd (NBPCL), a wholly-owned company of Govt of Madhya Pradesh, to fund projects worth Rs 22,000 crore for 225 MW hydroelectric projects & multipurpose projects in the State of Madhya Pradesh,” the company issued in a declaration.

The MoU for the projects was signed during a virtual meeting by Rajeev Sharma, CMD, PFC and I C P Keshari, Managing Director, NBPCL. According to the statement, the funds will be deployed by NBPCL for setting up hydroelectric projects of 225 MW and power components of 12 major multipurpose projects in Madhya Pradesh.

The Madhya Pradesh government has piloted the pre-feasibility study of these projects and has delivered approval for their execution.

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 the state government’s endeavour to implement twelve major multipurpose projects. Some of the major projects that will be financed under the MoU include Basaniya Multipurpose Project Dindori, Chinki Boras Multipurpose Project Narsinghpur Raisen Hoshangabad, Sakkar Pench Link Narsinghpur Chhindwara, and Dudhi Project Chhindwara Hoshangabad.

The disbursal of the funding will be linked to the execution of the projects, according to the PFC statement. And, it will consider the financial assistance to NBPCL based on due diligence and on mutually acceptable terms, it added.