SJVN Accomplished Financial Closure of Two Prime Projects

Himachal Pradesh: Satluj Jal Vidyut Nigam (SJVN) an Indian Power public sector undertaking today Accomplished the Financial Closure for the 210 MW Luhri-1 Hydro Electric Project, Himachal Pradesh & 75 MW Parasan Solar Power Project, Uttar Pradesh. The Chairman and Managing director of the company Sh. Nand Lal Sharma informed that the Financial Closure of 210 MW Luhri-1 HEP has been stamped with the State Bank of India. As per the Loan Agreement, the State Bank of India will provide Rs. 1537 crores at an effective interest rate of 6.90% per annum which is the debt portion of the total project cost of Rs. 1922.12 crores.

Sh. Nand Lal Sharma said that achieved another milestone has been achieved by SJVN with the Financial Closure of the 75 MW Parasan Solar Power Project having the Project cost of Rs 398.80 crores. The debt fund amounting to Rs 319.04 crores for the execution of the project is in place in the form of a Foreign Currency Term Loan sanctioned by Punjab National Bank, Dubai. The Bank will charge interest ranging from 1.78% to 5% after taking into account the Foreign Currency Fluctuation.

“Financial Closure is a stage of project development when all the conditions of a financing agreement are fulfilled prior to initial availability of funds by the financers,” said Sh Nand Lal Sharma.

Sh. Nand Lal Sharma apprised that the Foundation Stones of 210 MW Luhri Stage-1 Hydro Electric Project located in Shimla &Kullu districts of Himachal Pradesh was laid by Hon’ble Prime Minister of India Sh. Narendra Modi on 27th December 2021. The construction activities of the Project are in full swing and moving fast forward to generate 758.20 Million Units in a 90% dependable year from April 2026 onwards. The Levelized tariff for the generated electricity will be Rs. 4.24 per unit. 

Sh. Sharma further stated that the construction activities have commenced at 75 MW Parasan Solar Power Project. On commissioning, the Project will generate 168.343 Million Units annually at a tariff of 2.68 per unit. The Project is scheduled to be commissioned in Financial Year 2022-23. “The commissioning of the Project will be our contribution towards achieving the national target of 175 GW renewable energy by the end of the current year.”

SJVN has embarked on a fast-paced journey of harnessing Renewable Energy to meet the commitment of the Government of India of achieving 500 GW of installed capacity from non-fossil fuel sources by 2030.

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