SBI to lend Rs 1,400 cr to Damodar Valley

State Bank of India has decided to lend Rs 1,400 crore to Damodar Valley Corporation (DVC) to part-fund its 500-MW Bokaro Thermal Power Station (A) Project.

SBI's associate banks will also lend Rs 1,000 crore to the project, said a bank statement.

The Rs 3,500-crore project will have a debt-equity ratio of 70:30. It would replace the old and abandoned 247-MW Thermal Power Plant which was built in 1953. The Bokaro Unit is expected to be commissioned in April 2014.

Fuel for the project will come from Central Coalfields Ltd and the power generated will be fed to the national grid.