TNEB, NLC gets loan for thermal projects

Chennai: Rural Electrification Corporation (REC) will loan the Tamil Nadu Electricity Board (TNEB) and the Neyveli Lignite Corporation Rs 5,612 crore for two thermal power projects being set up by them in Tamil Nadu.

REC entered into an agreement with TNEB for a loan of Rs 2,175 crore it has sanctioned for the 600 MW North Chennai Thermal Power Station Stage-II Unit-II that TNEB is setting up at a cost of Rs 2,718 crore.

REC has sanctioned Rs 3,437 crore for Neyveli Lignite’s NLC Tamil Nadu Power Ltd, which is setting up a 1,000 MW thermal power project at Tuticorin at a cost of Rs 4,909 crore. REC signed the loan agreement with Neyveli Lignite on Friday.

Both the agreements were signed in the presence of the Chief Minister, Mr M. Karunanidhi.

This follows an agreement signed between REC and the TNEB in April 2007, which provides for an REC loan of Rs 16,000 crore to assist the establishment of over 3,000 MW of power generation and transmission and distribution infrastructure during the Eleventh Plan period.

Apart from these two projects, REC has also sanctioned BHEL Rs 2,475 crore for the 600 MW North Chennai Thermal Power Station. REC has sanctioned in 2008-09 over Rs 8,087 crore to assist a generation capacity of 2,200 MW being set up at a scheme cost of Rs 10,722 crore.

REC has also sanctioned Rs 3,113 crore for the Transmission and Distribution infrastructure, including converting the overhead cable to underground, in Coimbatore, Madurai, Tiruchi, Salem and Tirunelveli.