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Business News/ Industry / Energy/  PFC, SJVN tie up for 1.18 trillion investment in RE, thermal projects
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PFC, SJVN tie up for ₹1.18 trillion investment in RE, thermal projects

An MoU was signed for providing financial support to various projects, including massive renewable energy ventures totaling 12,178 MW capacity, along with a 660 MW thermal generation project

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New Delhi: PFC and SJVN Ltd have signed an MoU for providing financial support to various projects, including massive renewable energy ventures totaling 12,178 MW capacity, along with a 660 MW thermal generation project for an estimated project cost of around 1.18 trillion

The MoU was signed by Manoj Sharma, Director (Commercial) PFC, and Akhileshwar Singh, Director (Finance) SJVN in the presence of Parminder Chopra, CMD PFC, Shri Nand Lal Sharma, CMD, SJVN and Geeta Kapur, Director (Personnel) SJVN.

Under the MoU, PFC's financial support in form of term loan is tentatively proposed to range from 80,000 crore to 90,000 crore, demonstrating a substantial commitment to the realization of these vital projects. These funds may be further increased to accommodate the specific requirements of the renewable energy projects, emphasizing the adaptability of this partnership to evolving project needs, said that statement.

"This collaborative effort between PFC and SJVN Ltd underscores their shared commitment to fostering sustainable, clean energy solutions for India's future," a PFC statement said. By facilitating the development of renewable energy and thermal generation projects on the large scale, both entities are poised to contribute significantly to India's energy security and environmental sustainability, it added.

Amid government's focus on renewable energy and the target to reach 500 GW installed renewable capacity by 2030, Power Finance Corporation has increased its lending for renewable energy products.  In June, PFC entered into loan agreements worth more than 2.37 trillion with 20 companies including Adani Group, Greenco, ReNew Power, Continuum, Avaada, JBM Auto, Rajasthan Renewable Energy and Megha Engineering & Infrastructure, among others.

Further, the loan towards thermal projects also comes at a time when India plans to add thermal capacity in in the next few years along with its renewable plans to meet the growing power demand. 

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Published: 21 Sep 2023, 03:11 AM IST
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