REC Rs 10873 cr loan to APGenco

The Rural Electrification Corporation(REC) has signed an MoU with APGenco to provide a loan of Rs 10,873 crore, which will be utilised by the state power utility to fast track the implementation of three power projects. Of this loan, Rs 4,229 crore will be utilised for the 1,600-Mw 5th stage of Vijayawada thermal station, Rs 4,233 crore for the 1,600 Mw Stage-7 of Kothagudem power station and Rs 2,411 crore for the 960-Mw Polavaram hydro power project. The three projects require a total funding of Rs 13,591 crore of which the equity component of Rs 2,718 crore or 20 per cent of the total cost of the projects is being born by APGenco and the Andhra Pradesh government, according to the chief minister's office.