PFC, Chenab Valley Power Project Sign Rs 1,869.27 Crore Term Loan Agreement

Power Finance Corp. on Friday announced that it has entered into an agreement with Chenab Valley Power Project Pvt. to provide a term loan of Rs 1,869.27 crore.

According to PFC's statement, CVPPPL is a joint venture between NHPC Ltd. and Jammu and Kashmir State Power Development Corp., with a shareholding ratio of 51% and 49%, respectively.

PFC emphasised that the agreement entails a term loan of Rs 1,869.27 crore extended to CVPPPL.

With this agreement, the financial closure for Kiru hydroelectric project for Rs 3,738.53 crore has been achieved, PFC said.

As per the agreement, the loan will be used to develop and construct the greenfield Kiru Hydro Electric Project (4x156 MW) on the river Chenab in the Kishtwar district of Jammu and Kashmir.

(With inputs from PTI)