In a bid to strengthen the Odisha Power Generation Corporation (OPGC) further, its two partners, the State Government and the AES have infused additional equity of Rs485 crore into the firm at 51:49 ratio.
This move was taken for successful implementation of the ongoing OPGC expansion project of 2X660MW super critical units at the Ib Thermal Power Station in Jharsguda district.
This infusion has come as a part of the equity requirement for the financial year 2016-17 as agreed by both of the shareholders in line with the schedule of drawal envisaged in the financing agreements entered with the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
While the State Government has released Rs247.35 crore, the American firm AES has brought its share Rs237.65 crore. Thus, the OPGC’s paid up equity share capital rose to about Rs975 crore from the existing equity base of Rs490 crore.
As per the financing schedule, the State Government and the AES are required to bring together further equity aboutRs1,156 crore in 2017-18 out of which the AES’s share is Rs584 crore.
The State Government so far has been extending its cooperation in obtaining permits, licences, fuel security arrangement and land acquisitions for the expansion project which is scheduled to begin commercial operation in 2018.