PFC sanctions 1350.69 Cr to Bihar Grid Company Ltd
Power Finance Corporation Limited (PFC) has sanctioned a financial assistance of Rs. 1350.69 crore to Bihar Grid Company Ltd. (BGCL) for construction of 16 nos. of 400 kV, 220 kV and 132 kV transmission line, 4 nos. of associated substations and 7 nos. of line bay extension work in Bihar. Loan agreements were signed between PFC and BGCL officials in New Delhi in presence of Shri C. Gangopadhyay, Director (Projects), Shri N.B. Gupta, Director (Finance), PFC, and other senior officials of PFC, BGCL and Power Grid Corporation of India Ltd.
The estimated cost of the project is Rs. 1688.36 crore which is proposed to be funded in Debt-Equity ratio of 80:20 and the project is expected to be commissioned by July 2021.
PFC has a long standing relationship with Bihar State Utilities and Power Grid Corporation of India Ltd. and this upcoming transmission project is further expected to strengthen the relationship between these entities as the entire debt component of the project has been sanctioned by PFC as a sole lender.
BGCL is a joint venture company of Power Grid Corporation of India Limited & Bihar State Power (Holding) Company Limited incorporated to develop the Intra-State Transmission System in the State of Bihar.