New Delhi: State Bank of India (SBI) on Thursday said it, along with its associates, will provide a loan of Rs 2,400 crore to state-owned to Damodar Valley Corporation (DVC) for setting up 500 MW power project in Jharkhand.

SBI has agreed to lend Rs 1,400 crore to Damodar Valley Corporation (DVC) to part-fund its 500 MW Bokaro Thermal Power Station project while its Associate Banks have agreed to fund Rs 1,000 crore for the purpose, the bank said in a statement.

The unit is expected to be commissioned in April, 2014, it said.

The project was envisaged at an estimated cost of Rs 3,500 crore and would have a debt-equity ratio of 70:30, it said.

It would replace the old and abandoned 247 MW thermal power plant which has historical significance of being the first coal based thermal plant of DVC built in 1953, it added.

(Agencies)

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