India’s leading non-banking financial company, Power Finance Corporation (PFC), which is controlled by the Ministry of Power, has entered into an agreement with Narmada Basin Projects Company (NBPCL), a wholly owned company of the Government of the central state of Madhya Pradesh, to provide funding for 225 MW of new hydropower capacity and the power components of 12 other major multi-purpose projects worth a combined INR 220 billion (US$ 2.09 billion).
The MoU was signed on 27 May by Shri Rajeev Sharma, Managing Director of PFC, and Shri I.C.P. Keshari, Managing Director of NBPCL. “The Memorandum of Understanding will help PFC to actively partner with NBPCL and provide finance for hydroelectric plants totalling 225 MW along with the power components of multi-purpose projects as part of the state government’s endeavour to implement twelve major multi-purpose projects,” PFC said in a public statement.
Some of the multi-purpose irrigation, water storage and hydropower projects that will be financed under the MoU are the Basaniya project in Dindori, the Chinki Boras project in the districts of Narsinghpur, Raisen and Hoshangabad, the Dudhi project in Chhindwara and Hoshangabad, and the Sakkar Pench Link in Narsinghpur. The Government of Madhya Pradesh has conducted the pre-feasibility study of these projects and approved their execution. PFC said it would consider providing financial assistance to NBPCL for the projects based on due diligence studies and on mutually acceptable terms.
