Andhra: REC agrees to reduce interest rate on loan by 2%

The Rural Electrification Corporation (REC) of India has agreed to reduce the interest rate on loans to be given to Andhra Pradesh by 2 per cent.

The chief secretary of the state thanked the REC for the help that would benefit exchequer up to the extent of Rs. 200 crore per annum.

REC Chairman and Managing Director Dr. P.V. Ramesh attended a meeting with Andhra CS Dinesh Kumar at the state secretariat.

They discussed issues like the new office of the REC to be set up in Vijayawada and various aspects related to the rural electrification projects in the state after bifurcation.

The Andhra Pradesh Government and the REC of India had signed an MoU on January 1, 2017 through which the REC would give a loan of Rs. 10,000 crore to AP TRANSCO and APDISCOM for a period of five years from 2017 to 2022.

However, the state government requested to reduce the interest rate from 10 per cent to 8 per cent.

The REC responded in favour of the request.

The chief secretary said that the benefit will be used for other projects in the same sector.

He thanked the REC for responding positively for same interest rate for future projects also.

The CS requested to cooperate with state government which is taking steps to introduce battery operated buses in Amaravati, Visakhapatnam and Tirupati.

The CS further said that there are chances of thermal power production be totally vanished and for the same the governments are now focussing on hydro, wind and solar energy sectors.

The REC CMD further assured AP CS Dinesh Kumar of full cooperation in resolving all energy-related problems in the Amaravati capital region range.

He added that there are abundant funds for the rural electrification under the Deen Dayal scheme of the union government, and the REC will properly utilise them.

"The REC will extend full cooperation for solar power projects," he said.

Dr. Ramesh said that they are making provision for smart power metres in smart cities.

AP Transco Joint Manager P Dinesh, AP Genco Director (finance) Adinarayana, APEPDCL Director (finance) Chandrasekhar and the higher officials of REC took part in the meeting.