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.


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