Rural Electrification Corporation Limited (REC) which has been supporting power sector through a range of measures and initiatives, achieved yet another milestone by sanctioning a term loan of Rs. 3796 cores to NTPC Tamil Nadu Power Company, a 50:50 joint Venture Company of NTPC and Tamil Nadu Electricity Board. As against the normal practice of project financers, funding such mega project through consortium route, REC has decided to fund it single handedly. This is one of the highest sanctions made by REC for financing a power generation project, which makes a record. The project will be commissioned in the 11th plan and is likely to add 1000 MW thermal generation capacity to the state of Tamil Nadu and would contribute significantly to development of power infrastructure in the State.
Memorandum of Understanding to this effect confirming REC commitment to the project was signed recently in Chennai by Shri A. Veluchamy, Chief Project Manager, REC Project Office, Chennai and Shri Radha Krishnan, Chief Executive, NTPC Tamil Nadu Thermal Power Company, in the presence of Shri S. Machendranathan, IAS, Chairman, TNEB, Shri Vinod Behari, Executive Director, REC, New Delhi, Shri S. Kathiresan, Member (Accounts), TNEB and Shri K. Govinda Raju, Member (Generation), TNEB.
It may be added that REC has entered into an MOU with TNEB to provide project finance support of the order of Rs. 16000 crores for the TNEB's for the proposed 3000 MW Generation capacity addition and related transmission and distribution net work development schemes, proposed to be implemented during the 11th plan period.
The project is coming up at Kuruvimedu village, Ennore near Chennai. The first unit is expected to be commissioned in 2010-11. The entire work of the plant is awarded to BHEL and site levelling and piling work is in progress. When commissioned, this will be the first 500 MW Thermal Unit in Tamil Nadu.
PRA/SKK
(Release ID :38962)