New Delhi: REC Limited and PFC Limited have signed a common loan agreement worth Rs 26,850 crore with Meja Urja Nigam Private Limited (MUNPL) to fund the 2,400 MW Stage-II expansion of the Meja thermal power project in Prayagraj district, Uttar Pradesh, REC said in a statement on Thursday.
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MUNPL is a 50:50 joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL).
REC is the lead financier and the loan has been funded equally by REC and PFC, the statement said. Both are described in the release as Maharatna CPSEs under the Ministry of Power and infrastructure financing NBFCs.
The statement put the estimated project completion cost at Rs 38,357.81 crore, against which the Rs 26,850 crore loan covers about 70 percent.
The Stage-II scope comprises three ultra-supercritical units of 800 MW each (3x800 MW) fitted with an air-cooled condenser (ACC) system, at Meja tehsil in Prayagraj district.
The loan documents were signed at Prayagraj by Srinivasa Rao Gaddamanugu, chief executive officer of MUNPL; Shambhu Shankar Gupta, chief general manager at REC's Lucknow regional office; and Shelly Gupta, general manager at PFC.
The signing took place in the presence of Angshu Barua, chief financial officer of MUNPL; HK Das, executive director at PFC; and DB Londhe, executive director at REC.
The statement said the project would strengthen Uttar Pradesh's energy security and provide supply for homes, farms and industries while supporting the state's growth targets. It claimed the ultra-supercritical technology would reduce coal consumption and emissions compared with older plants.
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It further said the project would generate jobs during construction and operation, support local infrastructure in Meja tehsil, and provide power for industrial corridors, manufacturing clusters and urban expansion. The release did not quantify the jobs, the emissions reduction or the timeline for these outcomes.
