The Rural Electrification Corporation(REC) on 23 August 2012 signed MoU with Genco under which the former will provide the latter a loan of 10873 crore rupees to set up three power projects with a combined capacity of 2560 MW in Andhra Pradesh.
These are Vijayawada and Kothagudem thermal power stations’ expansion projections of 800 MW each, and the hydro-electric project of Polavaram dam (960 MW).
The expansion projects of the Vijayawada and Kothagudem thermal stations will require 5286 crore rupees and 5291 crore rupees respectively and that of Polavaram will require 3014 crore rupees. The REC loan will cover a major part of the cost of these projects while the remaining expenditure will be carried out by Genco.
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