The Rural Electrification Corporation Ltd has agreed to provide a loan of Rs 10,873.35 crore for three AP Genco projects.
This follows a decision during a meeting that the Chairman and Managing Director of REC, Rajeev Sharma, had with the Andhra Pradesh Chief Minister, N. Kiran Kumar Reddy, at the Secretariat. An MoU was signed between REC and AP Genco facilitating the loan.
The Chief Minister has directed 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 Polavarma hydel power project of 960 MW(12x80).
Of the Rs 5,268.54 crore required for the Vijayawada project, REC will provide Rs 4229.23 crore. And in the case of Kothagudem, of the Rs 5,291.15 crore required, REC will lend Rs 4,232.92 crore.
In the case of Polavaram hydel project, of the Rs 3,014 crore, REC will extend a loan of Rs 2,411.20 crore.
While the implementation cost of these three projects is Rs 13,591.69 crore, REC will provide Rs 10,873.35 crore. Rest of the 20 per cent equity of Rs 2,718 crore will be borne by AP Genco and Government of Andhra Pradesh.
Following the Chief Minister's request, REC agreed to offer a rebate of 0.5 per cent on the applicable rate of interest for these three projects.