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

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

The funds will be used for the construction of two super critical thermal power units, each having a capacity of 800 Mw, at Vijayawada and Krishnapatnam power stations. The 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 needed additional supply of power, the statement said.
 

Meanwhile, lighting up of the second unit (800 Mw) of Stage 1 project at Krishnapatnam was completed on Friday and is expected to be commissioned by September. Similarly, a new 600 Mw unit at Rayalaseema thermal power project is expected to be commissioned by December, 2015.