The Rural Electrification Corporation signed MoU with Genco

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The Rural Electrification Corporation signed MoU with Genco

The Rural Electrification Corporation ( REC ) on 23rd August,  2012 signed MoU with Genco under which the former will provide the latter a loan of 10873 crore rupees to set up three power projects with a combined capacity of 2560 MW in Andhra Pradesh.

These are Vijayawada and Kothagudem thermal power stations’ expansion projections of 800 MW each, and the hydro – electric project of Polavaram dam ( 960 MW ).

The expansion projects of the Vijayawada and Kothagudem thermal stations will require 5286 crore rupees and 5291 crore rupees respectively and that of Polavaram will require 3014 crore rupees. The REC loan will cover a major part of the cost of these projects while the remaining expenditure will be carried out by Genco.

The Rural Electrification Corporation will provide a massive loan of ₹10,873 crore to APGenco for setting up three power projects with a combined capacity of 2,560 MW, on a fast track mode.

These are Vijayawada and Kothagudem thermal power stations’ expansion projections of 800 MW each, and the hydro – electric project of Polavaram dam ( 960 MW ) .

The officials of REC and Genco signed an MoU to this effect here on Thursday in the presence of Chief Minister N. Kiran Kumar Reddy, REC chairman Rajeev Sharma. Genco MD K. Vijayanand and its joint MD D. Prabhakar Rao were present.

Expansion projects

According to the present estimates, the expansion projects of the Vijayawada and Kothagudem thermal stations will require ₹ 5,286 crore and ₹ 5,291 crore respectively and that of Polavaram ₹ 3,014 crore. The REC loan will meet a major part of the cost of these projects while the remaining expenditure will be borne by Genco.

An official said Genco had finalised plans to increase its installed capacity to 15,000 MW from the present 8,925 MW by 2015.

The Rural Electrification Corporation ( REC ) will fund three power projects of AP Genco. In this regard, a memorandum of understanding  ( MoU ) was signed in the presence of Andhra Pradesh Chief Minister N Kiran Kumar Reddy and REC Chairman Rajeev Sharma.

The agreement is for a loan of ₹ 10,893 crore to fund two thermal power plant expansion projects of 800 MW each at Kothagudem and Vijayawada and a 960 MW hydel project at Polavaram.

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