REC lends Rs 6890crore to Tamil Nadu for setting up power plant

NEW DELHI: State-run Rural Electrification Corp ( REC) on tuesday said it has signed loan agreement with Tamil Nadu's power generation and transmission utilities for financial assistance of Rs 6,890 crore.

The agreements were signed with Tangedco and Tantransco on January 28 in Chennai for implementation of 800-mw supercritical thermal power plant, renovation and modernisation of existing thermal power plants and establishment of new 765 KV, 400 KV substations in and around Chennai, an official statement said.

The loan assistance will ensure timely implementation of the generation and transmission projects, it said. REC will also lend financial assistance to the upcoming Udangudi super critical thermal power project and renewable energy, energy conservation, smart grid and automation power projects in Tamil Nadu, the statement said.