The Financial Express

India clears loan of $ 392 for power plant in Sudan

NEW DELHI, JAN 23:  India has cleared a loan of $392 million in two lines of credit through export-import bank (Exim) for setting up a 500 mw power plant and a transmission line project in Sudan.

The agreement was signed between Exim bank executive director RMV Raman and Sudan’s undersecretary, ministry of finance, El Sheikh Mohamed El Mark in New Delhi in the presence of senior officials and BHEL chairman and MD AK Puri.

The project costs about $500 million and is being shared by the two countries, with the Exim bank of India giving credit lines of $392 million.

Besides setting up a power plant for which a line of credit for $350 million has been agreed upon, Exim bank also signed for another credit of $41.90 million for setting up a transmission line and sub-station.

The loan is for a period of nine years, plus a moratorium period of three year,

Mr Raman said. The loan has been given at a fixed rate of interest of 4% and the repayment would be made in cash.

The government of Sudan has also given oil mortgage gurantee against the loan. This means, in case Sudan was unable to repay in terms of cash then it would be compensated through oil supply.

BHEL will set up the project on turnkey basis with crude oil-fired boilers. The contracts for equipments would be placed within a month, Mr Puri said after signing the agreement.

The government of Sudan plans to expand the project to 3,000 mw to meet the country’s fast growing electricity needs. This would open up more opportunities for BHEL, Sudan government officials said, adding they were keen that Indian companies set up manufacturing base there to tap the African and Middle-East market.

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