REC funds Tamil Nadu power project

The Rural Electrification Corporation (REC) has entered in a loan agreement with the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) for the setting up of the Udangudi Stage-I (2 x 660 MW) coal-based Supercritical Thermal Power Project in Tuticorin, Tamil Nadu. The REC will aid a sum of Rs 10,453 core. The aid is said to improvise the power infrastructure of the state and also aid their financial and operational performance. The project was initially estimated at Rs 9,865 crore. This cost includes the coal jetty. As per reports, the Bharat Heavy Electricals (BHEL) was awarded a contract of Rs 7,300 crore for the project that is expected to be comissioned in 2019-20. The process of land preparation has already started and the duration of contract is for a span of 36 months. According to reports, the finalisation of tenders is completed and the contractor will be finalised in the coming few days. As per a reported statement by TANGEDCO, the Environmental Clearance (EC) for the originally envisaged capacity of 2 x 800 MW was issued by the Ministry of Environment and Forest in October 2013.