VIJAYAWADA: The Energy Department on Tuesday issued orders providing government guarantee for APGENCO and AP Power Development Company Ltd (APPDCL) to raise Rs 1,000 crore each for the completion of stage five of Dr Narla Tatarao Thermal Power Station (Dr NTTPS) in Vijayawada and Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS) in Krishnapatnam, respectively. With the targeted commercial operation date (COD) inching closer, the government, in a recent cabinet meeting, decided to extend guarantee to the power companies to raise loans.
Two government orders were issued by Energy Secretary Nagulapalli Srikant in this regard. The orders said that the two power companies were permitted to raise `1,000 crore loan each from banks to contribute equity and that the balance will be utilised to provide security for the loans already availed or will replace the high cost loans availing low cost loans from banks with government guarantee.
While the 800 MW unit of Dr NTTPS, Vijayawada, is expected to be ready by June, the 800 MW unit of SDSTPS, Krishnapatnam, is likely to be ready by October.
Officials in the know of things said that over 85 percent of works of the stage five of Dr NTTPS, Vijayawada, were completed, and those pertaining to evacuation of power and other infrastructure were pending. Although the unit was initially targeted to be commissioned by November last year. The deadline lapsed and the government extended it to mid-2020.
Meanwhile, the SDSTPS, Krishnapatnam, is expected to take at least six-eight more months for the completion of works.With the government extending guarantee, the power companies expect to mobilise funds shortly to expedite the pending works.