REC to provide Rs 39000 crore assistance to Karnataka utilities

NEW DELHI: State-run Rural Electrification Corp ( REC) on Monday said it signed an agreement with power utilities in Karnataka for extending financial assistance of Rs 39,121 crore in the next five years.

As per the MoU, Karnataka Power Corporation Lts (KPCL) can avail a debt of Rs 27,121 crore for generation projects and other loan requirements. BESCOM can avail a debt of Rs 12,000 crore for implementation of distribution projects in the state for strengthening, augmentation, upgradation of distribution
infrastructure, sub-transmission system, new distribution, under-ground cabling works and implementation rural electrification, system strengthening, smart grid, smart meters etc.

Apart from financial assistance the power utilities have agreed to avail consultancy and management services from REC’s subsidiaries for their various activities/projects for the next five years.