New Delhi: State-run NTPC on Thursday said it has signed a loan agreement worth Rs 7,575 crore for financing its Meja thermal power project in Uttar Pradesh.

"The company has signed a loan agreement of Rs 7,575 crore for Meja Urja Nigam Private Ltd, a 50:50 Joint Venture of NTPC Ltd and UPRVUN Ltd," NTPC said in a statement.

With this loan agreement the project has achieved financial closure for Meja Thermal Power Project in Uttar Pradesh consisting of two units of 660 MW each.

A loan agreement for Rs 7,575 crore was signed with consortium of sixteen banks, led by the State Bank of India.

The loan has disbursement period of 60 months and is to be repaid in 10 years thereafter, the statement added.

The loan would be utilised for financing capital expenditure of Meja Thermal Power Project. The loan facility was syndicated by SBI Capital Markets Ltd.

The company's Meja power project is also part of the Ministry of Power's target of adding 18,000 MW during the current fiscal.

Prime Minister Manmohan Singh in a meeting with the key infrastructure ministries on Wednesday assigned the target of adding 18,000 MW to the Power Ministry.

Country's largest power producer NTPC expects to almost double investments for expansion activities at Rs 21,000 crore in the current fiscal. The state-run company had spent about Rs 11,000 crore in 2011-12.

NTPC, which has an installed generation capacity of 37,514 MW, is looking to increase the capacity in the coming years, especially with thermal power projects.

The company hopes to reach a capacity of 65,000 MW in the next five years.


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