CHENNAI: In a move to boost the power infrastructure in the State, a loan agreement has been signed between the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and Rural Electrification Corporation (REC) Ltd for financial assistance of Rs 10,453 crore to set up the 1,320MW Udangudi stage-1 power project.
The 2x660 MW coal-based supercritical thermal power project is set to come up in Thoothukudi district and has been in the news for sometime now.
The multi-crore deal was inked in the presence of Electricity Minister P Thangamani, Energy Secretary Vikram Kapur and the Chief Managing Directors of REC, TANGEDCO and the Tamil Nadu Transmission Corporation.
The directors of the State power corporations lauded the REC, a Central public sector enterprise, for its support in development of power sector in the State and further stated that the huge loan assistance from the REC as per the MoU would ensure timely implementation of these projects.
“Such a huge investment will not only improve power infrastructure of State power utilities but also improve their financial as well as operational performance,” P V Ramesh, CMD, REC, said.
According to an official statement from TANGEDCO, the State government and the power corporations, with the financial support, have made all out efforts for establishment of new generation, transmission and distribution schemes. This, they believe, would provide a long-term and permanent solution to meet the growing power demand in the State.