REC sanctions loan to NTPC Tamil Nadu Power Co

New Delhi: Rural Electrification Corporation (REC) said it has sanctioned a loan of Rs 3,796 crore to NTPC Tamil Nadu Power Company, a 50:50 joint venture of NTPC and Tamil Nadu Electricity Board (TNEB), for a thermal power project.

REC has funded this project single handedly as against the normal consortium route. It would be commissioned in the 11th plan and is likely to add 1,000 MW thermal generation capacity to the state of Tamil Nadu, a company release said.

The project would come up at Kuruvimedu village near Chennai. The first unit is expected to be commissioned in 2010-11. State-run BHEL would supply power equipments required for the project, the release said.

Meanwhile, REC has also signed a Memorandum of Understanding with TNEB to provide financial support of Rs 16,000 crore for its 3,000 MW additional capacity generation and related transmission and distribution network development schemes for the 11th Plan.