Rural Electrification Corp to extend Rs 9,000 cr loan to Andhra

Rs 6,000 cr to be used to set up T&D network in new capital region, rest to be used for 500 mw solar project by AP Genco

Rural Electrification Corporation Limited(REC) today signed an MoU with Andhra Pradesh power utilities to extend a fresh loan of Rs 9,000 crore.

The Central public sector enterprise, set up with a main objective of financing rural electrification projects in the country, had already extended loans to the tune of Rs 28,054 crore for various projects in Andhra Pradesh.

Out of the fresh round of finance, which will be made available at a rebate ranging from 0.85 per cent to 1 per cent, Rs 6,000 crore would be utilised for setting up of transmission and distribution network in the new capital region and outside.

The other Rs 3,000 crore would be spent on setting up of a 500 mw solar power project by AP Genco in Anantapur district.

The MoU was signed at Delhi by REC chairman and managing director Rajeev Sharma and APTransco chairman and managing director and APGenco managing director K Vijayanand in the presence of chief minister N Chandrababu Naidu.

The loan extended by REC will be utilised for building underground cabling projects, gas insulated sub-stations and for transmission and sub-transmission system improvement works among other things, according to Vijayanand.

Andhra Pradesh is one of the three states identified by Government of India for implementation of 24/7, power for all initiative under which the state government is planning to achieve 100 per cent electrification of all the villages, towns and cities by March 2016.