Hyderabad, August 17: In a major breakthrough, the Andhra Pradesh
Power Generation Corporation (APGENCO) will get Rs 9,506-crore financial assistance for its projects from the Power Finance Corporation and Rural Electrification Corporation.
The Chief Minister, Mr K Rosaiah, has congratulated the Principal Secretary, Energy, Mr Suthirtha Bhattacharya, the APGenco managing director, Mr K Vijayanand, and the Genco finance director, Mr D. Prabhakar Rao, for securing this loan from the Centre-owned Power
Finance Corporations.
Mr Bhattacharya and Mr Vijayanand today met and informed the Chief Minister of the major decisions of the PFC and REC in this regard. The Chief Minister had a brief discussion in this regard with the Chief Secretary, Mr S V Prasad, and other APGenco
officials.
This is the first time that a State-owned power generation company was sanctioned such a huge loan at a very reasonable rate of interest. The Power Finance Corporation sanctioned advance financial assistance to the tune of Rs 6,806 crores for setting up the 2×800 MW coal-based Vadarevu Thermal Power Project (Phase-I) in Prakasam District.
The total cost of the project was estimated Rs 8,507.60 crores. The Memorandum of Understanding in this regard between the Power Finance Corporation and AP Genco will be executed shortly.
Meanwhile, the Rural Electrification Corporation has sanctioned Rs 2,700 crores as financial assistance for development of Karimnagar Gas-based Plant (Phase-I) 700 MW in Karimnagar. The APGenco was given loan at a reasonable rate and 25 basis points less than other Bonds.
These two projects when completed will boost the State power generation by 2300 MW and will be a big boon to the power-starved State. Mr Vijayanand said that the two projects will be completed and commissioned on schedule. He said all the APgenco projects are progressing on schedule and they are hopeful of commissioning them on the targeted date.
The Chief Minister urged the APGenco officials to make use of the financial assistance and complete all projects on time. He assured all assistance from the State government in this regard.
Mr Rosaiah expressed satisfaction that PFC has further reduced the rate of interest from 10.75% to 10.50% for the loan of Rs 6,806 crores sanctioned to 2×800 MW Vadarevu Project. Cordial relations and effective bargaining has resulted in saving of around Rs. 70 crores on Rs. 3558 crores counter part funding (20% of the project cost) sanctioned by various banks to the above projects by reducing the interest rate further by 0.5% i.e., 10.0% compared with PFC rate of 10.75%.
This is a record by any power generation corporation in the country. Prudent financial management ensured APGenco to earn an additional Rs. 15 crores by way of short term deposits with Banks, apart from the interest savings on cash credit.
With sustained efforts IDBI has scaled down their demand from Rs. 85.50 crores to Rs. 5.40 crores for the loan sanctioned to KTPS resulting in a saving of Rs.
80 crores. “NIL” comments by the Accountant General on APGenco accounts for the last consecutive four years is significant in this context.
The Chief Minister while appreciating the financial discipline of APGenco asked the officials to keep it up to further strengthen the Corporation. (NSS)