To fund three key power projects in Andhra Pradesh, the Rural Electrification Corporation (REC) is to provide a loan of Rs 10,873.35 crore. A decision in this regard was taken during a meeting that the Chairman and Managing Director of REC, Rajeev Sharma, had with the Andhra Pradesh Chief Minister, Kiran Kumar Reddy, at the State Secretariat. A Memorandum of Understanding (MoU) was signed between REC and AP Genco facilitating the loan.
Reddy directed the AP Genco to take up these three projects on a fast-track mode by availing the funding from the REC. The funding is for Vijayawada thermal power plant expansion of 800 mw, and Kotahgdeum project expansion of 800 mw and Polavaram hydel power project of 960 mw (12×80).
Of the Rs 5,268.54 crore required for the Vijayawada project, REC will provide Rs 4,229.23 crore. And in the case of Kothagudem, of the Rs 5,291.15 crore required, REC will lend Rs 4,232.92 crore.
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