Rural Electrification Corporation Ltd and AP Transco have struck a ₹9,000-crore loan deal for setting up of a ₹3,000-crore 500-MW solar park by AP Genco in Anantapur district and ₹6,000 crore towards strengthening the transmission and distribution network.

K Vijayanand, Chairman & Managing Director, AP Transco and MD, AP Genco, signed the memorandum of understanding on behalf of AP utilities at New Delhi along with Rajeev Sharma, Chairman and Managing Director, Rural Electrification Corporation, in the presence of Chief Minister N Chandrababu Naidu and State Secretary (Energy) Ajay Jain,

The ₹6,000-crore loan for strengthening the T&D network in the State, includes the Capital Region area in Guntur and Krishna districts. The Transmission infrastructure projects include underground cabling, gas insulated sub-stations, transmission and sub-transmission system improvement.

Vijayanand said REC Ltd has always been supportive of AP Power utilities and has been extending liberal financial support. Earlier, it has extended loans of ₹9204 crore to AP Genco, ₹10,300 crore to AP Transco and ₹8550 crore to AP Discoms. The loan is being offered at a concessional interest rate with a rebate ranging from 0.85 per cent to 1 per cent.

The AP power sector is being recognised by the Central government as the trend setter in the power in implementing the Power For All (PFA) programme and Energy Conservation and Energy Efficiency programmes and AP utilities will continue to strive hard to reach the objective of the Government in making the power sector self-reliant and self-sufficient, Vijayanand said.

Andhra Pradesh along with Rajasthan and New Delhi are three States identified by the Centre for implementation of ’24 X 7 Power for all scheme.’ The State is seeking to achieve 100 per cent electrification in the State by March 2016.

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