Powergrid signs Rs 100 billion term loan agreement with SBI (India)
Power Grid Corporation of India Limited (Powergrid) has entered into a term loan facility agreement for Rs 100 billion with the State Bank of India (SBI). The loan will be earmarked for meeting Powergrid’s capital expenditure needs for the expansion, renovation and development of various ongoing and new transmission lines.
REC to receive €200 million loan facility from KfW
The Rural Electrification Corporation (REC) has signed an agreement with German development bank, KfW, for a Euro 200 million loan facility for renewable energy projects in India. This is REC’s fourth line of credit under the Indo-German development cooperation, which aims to finance clean energy projects in India.
PFC provides Rs 1.92 billion financial assistance to Nagpur Waste Management
Power Finance Corporation (PFC) has extended a financial assistance of Rs 1.92 billion to Nagpur Waste Management, a Vishvaraj group firm, marking its foray into the financing of sewage treatment plants (STPs). The funds will be utilised for the establishment of an STP in Nagpur, which will sell 150 million litres per day of treated sewage water to the PFC-funded 1,340 MW Khaparkheda thermal power station (TPS) and the 2,400 MW Koradi TPS of Maharashtra State Power Generation Company Limited. The project aims to reduce the stress on fresh sources of water for power generation by supplying treated sewage water for specific secondary uses such as ash handling and cooling.
Government defers stake sale in CIL
The government has advised public sector unit (PSU) Coal India Limited (CIL) that the deadline for a minimum 25 per cent public holding has been deferred by two years. The original deadline for complying with the norm was August 21, 2017. The centre was planning to divest 5-10 per cent stake in the PSU to comply with the norms for listed companies. The management had started conducting roadshows for investors in the UK, Singapore and Hong Kong, preparatory step for the stake sale. The government holds 78.32 per cent in the company, which is 3.32 per cent short of the 25 per cent mandatory public holding mark.
Axis Bank takes LAPL to NCLT
Axis Bank has reportedly taken Lanco Amarkantak Power Limited (LAPL) to the National Company Law Tribunal (NCLT), seeking insolvency resolution under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, over a claim of Rs 9.2 billion in loans. In an application filed before the Hyderabad bench of the NCLT, Axis Bank stated that the first date of default under the sanctioned facilities was triggered on August 31, 2017 and that the status has remained unchanged till date. The bank had categorised LAPL’s loan account as “Doubtful” in May 2018. LAPL has 600 MW of operational capacity.
AfDB approves $123.4 million loan for transmission line project (Tanzania)
The African Development Bank (AfDB) has approved a $123.4 million loan to partially finance the North-West grid’s 400 kV Nyakanaz-Kigoma power transmission project in Tanzania. The scope of the project includes the construction of a 280 km long transmission line, and the integration of the 33 kV Kigoma and Kasulu distribution networks with the main grid, including the supply of last-mile connection material to serve nearly 10,000 consumers in the Kigoma region. The project will also receive funding from the South Korea Economic Cooperation Fund and the Tanzania government. It is slated for completion in 2024.
ADB to provide $500 million to finance an 800 MW power plant (Bangladesh)
The Asian Development Bank (ADB) and the Bangladesh government have signed loan agreements for $500 million to finance the 800 MW combined cycle power plant project in the Khulna region of Bangladesh. The project is aimed at improving energy security in Bangladesh. It also envisages the construction of associated natural gas supply and power transmission infrastructure facilities. The project is due to be completed by end-June 2022.
Bosnia to guarantee $700 million loan to EPBiH (Bosnia)
A regional government in Bosnia has agreed to provide a loan guarantee of $700 million from the Export-Import Bank of China to EPBiH, a public electric utility company in Bosnia and Herzegovina, for setting up an additional generating unit at its 715 MW Tuzla coal-fired power plant. The guarantee terms include a 20-year loan repayment period with a five-year grace period and a one-time payment by EPBiH of $27.7 million into a regional guarantee fund. The guarantee is yet to receive the required approval from Parliament.
EU approves three renewable energy schemes worth €144 million (Denmark)
The European Union (EU) state aid regulators have approved three Danish renewable energy schemes worth Euro144 million as part of Denmark’s aim to reduce its dependence on fossil fuels by 2050. The aid comprises a Euro112 million scheme for onshore and offshore wind turbines and solar installations. The second scheme, worth Euro 27 million, is for onshore wind test and demonstration projects. The third Euro 5 million project involves a transitional measure for onshore wind. The aid for these three projects will be granted for a period of 20 years