India gives US$392 mln loan to Sudan for power plant
Jan 23, 2006 (NEW DELHI) — In the second largest investment after ONGC Videsh Ltd’s one billion dollar plans in Sudan, India today signed an agreement with the African nation for a 350 million dollar Line of Credit for setting up a 500 MW power project by state-run Bharat Heavy Electricals Ltd.
The total project cost of about 500 million dollar is being shared by the two countries, with the Exim Bank of India giving a credit line of 350 million dollar.
In addition, the two countries also signed another loan agreement of 41.9 million dollars for Singa-Gedarif transmission line and sub-station.
BHEL will set up the project on turnkey basis with crude oil-fired boilers. The contracts for equipments would be placed within a month, BHEL Chairman and Managing Director A K Puri said here.
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.
After OVL’s investment in exploration blocks, this project would be the second largest investment by Indian companies in that country. OVL is also understood to be eyeing additional oil blocks and an oil refinery. Other than equity participation in three exploration blocks, ONGC has also completed a 741 km long oil pipeline in Sudan.
(PTI)