REC on 6 March 2010 inked an MoU with NTPC Tamil Nadu Energy Company (NTECL), a JV company set up by NTPC and the Tamil Nadu Electricity Board (TNEB), to fund a power project in North Chennai.

NTECL is setting up a 2x500 MW greenfield power project at Vallur in North Chennai. Phase I of the project entails an outlay of Rs 5,423 crore.

Of the total project cost, 30 per cent is being met by equity and balance through debt.

REC has already sanctioned the entire debt portion of Rs 3,796.48 crore for Phase I. The entire project is likely to commence generation by December 2011.

As per sources, one more unit of 500 MW will come up at the same site with an investment of Rs 3,020 crore. REC has sanctioned the entire debt portion of Rs 2,114 crore. The third unit is likely to commence operation in November 2012.

Also See:

REC to lend Rs 2,167 cr to transmission projects (20-January-10)

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