Thal Power to invest $ 58.7 million in ThalNova

Thal Limited today announced that it plans to “invest an amount not exceeding PKR equivalent of US Dollar 58.7 million in ThalNova directly or through Thal Power and to arrange a Standby Letter of Credit in an amount not exceeding US Dollar 41.1 million”.

ThalNova Power Thar Private Ltd (TNPTL) had signed a Engineering, Procurement, Construction (EPC) contract with China Machinery & Engineering Corporation (CMEC) in Beijing during April last year to develop the 330 MW Power project in Thar, Sindh.

The plant is being set up at a cost of $498.30 million. The amount includes the capital cost of $408.2 million, custom duties and cess, financing fees and charges, interest during construction, and Chinese debt serving charges.

In a bourse filing informing all relevant stakeholders, the company today announced that in a resolution passed by the shareholders of the company at Extra Ordinary General Meeting held on March 22^nd, 2018 it has approved a total investment worth $ 99.8 million in ThalNova directly or through a wholly owned subsidiary ‘Thal Power’.

The company in the notice informed that it plans to “extend a loan in an amount not exceeding the PKR equivalent of US Dollar 23.2 Million to ThalNova .... through Thal Power for the purposes of satisfying any funding shortfall to achieve the Project Completion Date”.

The company further informed that it has agreed to extend an amount worth $23.2 million in favor of the company to create security on assets of the company.

ThalNova is a joint venture with Thal Limited and Novatex Limited as the main shareholders.