REC to grant Rs 24,000 cr for power projects in Telangana

Public sector undertaking Rural Electrification Corporation Limited (REC) has signed a memorandum of understanding with the Telangana State Generation Corporation (Genco) to provide a funding of Rs 24,000 crore for the latter's power projects. These projects include 800 Mw at KTPS, 1,080 Mw at Bhadradri in Manugur of Khammam district and 4,400 Mw at Damaracherla in Nalgonda district, totalling 6,280 Mw.

In addition to the Rs 24, 000 crore of funding from REC, Power Finance Corporation (PFC) had earlier agreed to provide funding Rs 15, 000 crore for the same projects, and TS Genco will fund Rs 3,000 crore totalling Rs 42, 000 crore.

This apart, NTPC as mandated by the central government, will be spending Rs 24, 000 crore for its 4,000-Mw project while Singareni will spend Rs 4,000 crore. Another Rs 21, 500 crore will be invested in solar projects and evacuation and transmission lines parallely. Thus the total investment for 10, 280 Mw of power plants in the next four years will amount to Rs 91, 500 crore.

Briefing this to REC chairman and managing director Rajeev Sharma on Saturday, Telangana chief minister K Chandrasekhara Rao said with the funding from REC, PFC and Genco the financial part for the projects had been achieved.

“Around 1,134 acre has been acquired and environmental clearances have been obtained for the Bhadradri power plant. This plant’s requirement of 1.2 TMC of water will be met from Godavari river. BHEL has already started work there. For the 800-Mw plant at KTPS, work has commenced in the existing land. For the remaining 4,400 Mw, 10, 000 acre has been acquired at Damaracherla in Nalgonda district and environment clearances are being obtained. Close to 4.6 TMC of water required for this plant will be drawn from the nearby Krishna river,” the chief minister said.

At the request of the chief minister, Rajeev Sharma has reduced the rate of interest on its funding by 0.5  per cent, as compared to other states as a special case. This will reduce the burden on TS Genco by about Rs 600 crore, according to a press release.