SBI Sanctions ₹10,050 Crore Loan for Major Thermal Power Project by Damodar Valley Corporation

SBI Sanctions ₹10,050 Crore Loan for Major Thermal Power Project by Damodar Valley Corporation

MUMBAI: The State Bank of India (SBI), the country’s largest lender, announced on Thursday that it has approved a substantial project loan of ₹10,050 crore for the Damodar Valley Corporation (DVC). This financing will support DVC's development of a significant thermal power project, which is a key component in the country's energy infrastructure expansion plans.

The loan will fund the construction of a 1,600 MW Ultra Super Critical Thermal Power Project, comprising two 800 MW units located in Koderma, Jharkhand. According to an official statement from SBI, this project has been identified by the Ministry of Power as a critical initiative for enhancing the country's power generation capacity by 2030.

SBI's decision underscores its commitment to supporting large-scale infrastructure projects despite broader concerns about capital expenditure (capex) in the market. The bank has consistently reported a strong pipeline of corporate loans, demonstrating its active role in financing key development projects even amid discussions about overall investment levels.

The Ultra Super Critical Thermal Power Project is expected to play a pivotal role in meeting the growing energy demands of the region, contributing to improved power supply and stability. This project aligns with the Indian government's broader objective to boost energy production capacity and ensure sustainable growth.

The financing of this project by SBI highlights the bank's ongoing efforts to support significant infrastructure development, reinforcing its position as a major player in the corporate lending sector. This move is part of SBI's broader strategy to advance its loan portfolio and contribute to national development goals.