The State Bank of India (SBI) is likely to increase the tenure of loans for power projects from the current average of 7-9 years to 11-12 years.
Currently, SBI gives credit period of 7 years for power projects but in exceptional cases it is increased to 9 years. However, SBI is planning to increase it further to 11-12 years especially in case of Ultra Mega Power Projects (UMPP).
Of its Rs 25,000 crore total exposure to the infrastructure sector, SBI's exposure to the power sector is to the tune of Rs 17,000 crore. This is around 5-6 per cent of its total loans. SBI has exposure in the Mundra (Gujarat) UMPP promoted by Tata Power as well as in the Sasan (Madhya Pradesh) UMPP being developed by Reliance Power. However, the bank does not have any exposure in the Krishnapatnam (Andhra Pradesh) UMPP, also bagged by Reliance Power.
Source : projectstoday
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