The Rural Electrification Corporation (REC) has sanctioned Rs 16,070 crore loan for construction of Yadadri thermal power plant in Nalgonda district.
REC chairman and managing director Rajeev Sharma handed over the cheque for Rs 16,070 crore to chief minister K Chandrashekar Rao at the latter’s camp office here on Tuesday.
The state government is constructing Yadadri Thermal power plant with an installed capacity of 4,400 MW at Damacharla in Nalgonda district to make the Telangana a power surplus state.
REC has already extended loan to the tune of Rs 4,321 crore three months ago for construction of 800 MW power plant in Palvoncha in Khammam district taking the total loan extended by the REC to Telangana to Rs 20,391 crore. “Extending such a huge amount of loan to any state is first time in the history of REC,” said CMD Rajeev Sharma after handing over the cheque to KCR.
“We have reposed full confidence in the plans and commitment of Telangana state government to make the state power surplus and extended the loan,” Sharma said.
He further added that the REC would give loans with an interest of 11.5 per cent for the construction of power plants. But, the REC reduced the interest rate by 0.5 per cent and extended loan at 11 per cent to Telangana.
With the reduction in 0.5 per cent, the Telangana government can save Rs 500 crore in interest amount.
The Power Finance Corporation (PFC) has already extended Rs 4,000 crore loan for the generation of another 800 MW power.
Source: The New Indian Express