Damodar Valley Corp switches to SBI loan to trim interest cost...

 

At a time when power companies are facing stress in managing debt, state-owned Damodar Valley Corporation has successfully swapped a Rs 2633-crore high cost existing project loan with SBI to save on interest cost.

"We have repaid the remaining project loan of Rs 2633 crore of the Power Finance Corporation with a new loan from SBI that lowers our interest cost to 10.6 per cent from 12.5 for our 1000 MW (500x2) Koderma thermal power project," DVC Director (Finance) T K Gupta.

Over the next 10 years, DVC would save a substantial amount, he said.

One unit of Koderma 500MW has been commissioned and another will be commissioned in the next few days.

Gupta said the company is aiming to swap another project loan of Rs 3,000 crore with a low cost one on similar lines.

"We will share the details once we complete the deal," he said.

DVC chairman R N Sen said in the past the company has switched to low cost loan when a thermal project is commissioned.

During project implementation period, banks normally do not prefer or lend at higher rate due to execution uncertainty risk.

When a project gets commissioned, banks agree for credit at cheaper rate as risk is minimised.

DVC registered a net profit of Rs 392 crore in 2012-13.

 

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DuPont planning solar products in India; in talks with firms...

 

DuPont, US chemical giant with diverse interests, is in talks with solar panel manufacturers to ascertain the feasibility of new products the company plans to unveil in India.

"For our new product, E-Frame, we are currently in discussions with some of the leading Indian solar panel manufacturers to validate the concept and evaluate product feasibility in the Indian installations," Rajaram Pai, business leader, DuPont Photovoltaic Solutions, South Asia.

The new range of products in the solar segment are focused on materials that continue to improve the output, power and long-term reliability and durability of solar panels, lowering overall system costs, and making solar energy more competitive with other sources of electricity.

"We are committed to the solar energy industry and investing in R&D to develop materials that address the critical needs. Our key product offerings include polyvinyl fluoride films, photovoltaic metallisations, polyimide films, etc," Pai said.

These materials continue to improve the power output and long-term reliability and durability of solar panels, lowering overall system costs, and making solar energy more competitive with other sources of electricity, he said.

Last year, DuPont spent USD 2.1 billion for R&D and innovation in the three areas that the firm is addressing through science-powered solutions are -- more and better food, reducing dependence on fossil fuels and protecting people and the environment, Pai added.

 

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