REC to lend ₹10,453 cr for TN power project

The Rural Electrification Corporation has signed a loan agreement with the Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

An REC statement said that this is for setting up TANGEDCO’s Udangudi Stage-I, 2x660 MW coal-based Supercritical Thermal Power Project in Tuticorin, Tamil Nadu.

Project cost

The statement said this ₹10,453-crore loan will improve the power infrastructure of the State utilities and their financial and operational performance.

The total project cost of the Udangudi Thermal Power Project – Stage I (2x 660 MW) including coal jetty was initially estimated at ₹ 9,865 crore.

Contract awarded

According to TN officials a ₹7,300-crore contract has been awarded to BHEL for the power plant. Work on land preparation has started and the contract duration is 36 months.

The tenders have been finalised and the contractor will be announced soon. The project was expected to be commissioned in 2019-20.

The Environmental Clearance (EC) for the originally envisaged capacity of 2x800 MW was issued by the Ministry of Environment and Forest in October 2013, according to a TANGEDCO statement.