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SJVN completes the financial closing of two major projects

Financial closing

SJVN has completed the financial closing of 2 projects

The financial closing – The 210 MW Luhri-1 Hydroelectric Project in Himachal Pradesh and the 75 MW Parasan Solar Power Project in Uttar Pradesh were both completed today by Satluj Jal Vidyut Nigam (SJVN), an Indian Power public sector initiative. The Financial Closure of the 210 MW Luhri-1 HEP has been stamped with the State Bank of India, according to the company’s Chairman and Managing Director, Sh. Nand Lal Sharma. The State Bank of India will give Rs. 1537 crores at an effective interest rate of 6.90 percent per annum as part of the loan agreement, which represents the debt share of the overall project cost of Rs. 1922.12 crores. 
SJVN has achieved another milestone, according to Sh. Nand Lal Sharma, with the financial closure of the 75 MW Parasan Solar Power Project, which cost Rs 398.80 crores. In the form of a Foreign Currency Term Loan sanctioned by Punjab National Bank, Dubai, a debt fund of Rs 319.04 crores is in place for the project’s implementation. After taking into account Foreign Currency Fluctuation, the Bank will levy interest ranging from 1.78 percent to 5%. 
“Financial Closure is a stage of project development when all the terms of a financing agreement are met prior to the financers’ initial availability of cash,” Sh Nand Lal Sharma explained.

Financial closing done by SJVN

On December 27, 2021, Hon’ble Prime Minister of India Sh. Narendra Modi laid the foundation stones of the 210 MW Luhri Stage-1 Hydro Electric Project, which is located in the Shimla and Kullu districts of Himachal Pradesh. The Project’s construction activities are in full speed, with plans to produce 758.20 million units in a 90 percent reliable year starting in April 2026. The generated electricity will have a levelized tariff of Rs. 4.24 per unit. 
The construction of the 75 MW Parasan Solar Power Project has also begun, according to Sh. Sharma. The Project will create 168.343 million units per year once it is fully operational, at a price of 2.68 per unit. The project is expected to be completed in the fiscal year 2022-2023. “Commissioning the Project will be our contribution to meeting the national goal of 175 GW renewable energy by the end of this year.” 

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