Neyveli Lignite Corporation, an integrated mining cum power generating company has inked pact with SBI for a rupee term loan of Rs 2,500 crore for Neyveli New Thermal Power Station (NNTPS) (2x500MW). The company had signed the rupee term loan agreement to meet 70% of the debt requirement of the project.
Neyveli New Thermal Power Station is lignite based thermal power project sanctioned by government of India in June 2011. The project is a replacement of the existing 600 MW TPS I power plant which has served for about 50 years.
The funding of the project will be at debt equity ratio of 70:30. The equity part will be funded through internal accruals and the loan component will be funded through rupee term loan, external commercial borrowing, bonds and other form of debts.
