REC, PFC to give Rs 7,800-crore loan to AP power projects

Rural Electrification Corporation (REC) and the Power Finance Corporation (PFC) together have agreed in principle to extend a loan of around Rs 7,842 crore for the upcoming projects in Andhra Pradesh, according to a statement issued by the energy department.

The funds will be used for the construction of two super critical thermal power units each having 800 mw capacity at Vijayawada and Krishnapatnam power stations respectively, it said. Total project cost of these two units is Rs 10,426 crore. Chief minister N Chandrababu Naidu asked the energy department officials to expedite the work on these two projects since the state need additional supply of power, the statement said.

Meanwhile, the lighting up of the second unit (800 mw) of the stage 1 project at Krishnapatnam was completed on Friday and is expected to be commissioned by September 2014. Similarly a new 600 mw unit at Rayalaseema Thermal Power Project is expected to be commissioned by December, 2015, officials informed.