The Hindu Business Line : Satluj Jal Vidyut Nigam saves Rs 90 cr in interest liability

SATLUJ Jal Vidyut Nigam Ltd, the public sector unit implementing the 1500-MW Nathpa Jhakri hydel power project, has managed to save Rs 90 crore every year in interest liability by retiring high-cost debt, the Chairman and Managing Director, Mr Y.N. Appa Rao, has said.

At a press meet here on Friday, Mr Rao said that for the construction of the country's largest Rs 8,600-crore underground hydel power project in Himachal Pradesh, the company had taken a loan of Rs 1,600 crore from the World Bank besides arranging suppliers' credit to the tune of Rs 600 crore more.

The corporation could retire the high-cost debt by obtaining low-interest loans from Power Finance Corporation Ltd (Rs 1,800 crore), LIC and various commercial banks. He said the first unit (250 MW) of the project started commercial generation from October 6 and the company was selling over 6 million units to northern grid States. The power tariff was Rs 2.40 per unit.

The second 250-MW unit would commence generation by the end of the month. On completion of all six units by July 2004, the project would generate 6,950 million units of power annually with a revenue of Rs 5 crore per day.

About the unique features of the project, Mr Appa Rao said it had the world's largest underground desilting complex having four chambers each 525 m long (more than half-a-kilometre), 16.31 m wide and 27.5 m deep (like a nine-storeyed-building underground).

The chambers were egg-shaped and designed to arrest the flow of sediment particles in the water from entering the head race tunnel and further into the turbines. He said the mega project would cause no ecological damage.

During the execution of the project, he said, many geological surprises and natural calamities were encountered and the biggest challenge was a massive flash flood in the river in August, 2000, when most of the equipment was damaged.

The project was likely to cost Rs 8,500 crore and it was being funded with 50 per cent equity and the rest loan. The equity participation of the Union Government and the Himachal Government would be in the ratio of 3:1, he added.

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Satluj Jal Vidyut Nigam saves Rs 90 cr in interest liability