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REC signs loan agreement of Rs. 10,453 crore with TANGEDCO


The loan assistance from REC will not only improve the power infrastructure of the state utilities in Tamil Nadu but will also improve their financial and operational performance.

By PPFI Team
January 12, 2018

 The Rural Electrification Corporation (REC) signed a loan agreement of Rs.10,453 crore with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for setting up of TANGEDCO’s Udangudi Stage-I, 2x660 MW Coal based Supercritical Thermal Power Project in Tuticorin District of Tamil Nadu. 


Rural Electrification Corporation Limited (REC) is a public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India. The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. The company sanctions loan as a sole lender or co-lender or in consortium with or without the status of lead financer. It also provides consultancy, project monitoring and financial/ technical appraisal support for projects, also in the role of nodal agency for Government of India schemes or projects.

The Tamil Nadu Generation and Distribution Corporation Limited is an electrical power generation and distribution public sector undertaking that is owned by the Government of Tamil Nadu. It was formed on 1 November 2010 under section 131 of the Electricity Act of 2003, and is the successor to the erstwhile Tamil Nadu Electricity Board. The electricity board's generation and distribution wings are its nucleus.TANGEDCO is a subsidiary of TNEB Limited.



The loan assistance from REC will not only improve the power infrastructure of the state utilities but will also improve their financial and operational performance. The signing ceremony witnessed the presence of Hon’ble Electricity, Prohibition and Excise Minister of Tamil Nadu, Shri P Thangamani, Dr. P V Ramesh, CMD, REC, Shri Vikram Kapur, Principal Secretary(Energy), Shri S Shanmugam MD, TANTRANSCO and Dr. M Sai Kumar, CMD, TANGEDCO along with other officials from REC, Ministry and TANGEDCO.