REC and PFC sign Rs 26,850 crore loan agreement for 2,400 MW Meja Thermal Power Project expansion
Prayagraj, July 31
State-owned non-banking financial companies REC Limited and Power Finance Corporation Limited signed a Rs 26,850 crore common loan agreement with Meja Urja Nigam Private Limited to finance a 2,400 MW thermal power expansion in Uttar Pradesh, according to a press release.
MUNPL, an equal joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), will use the funds to establish three ultra-supercritical units of 800 MW each under Stage-II of the Meja Thermal Power Project in Prayagraj district.
The overall estimated completion cost of the expansion project stands at Rs 38,357.81 crore. REC Limited serves as the lead financer for the venture, with the total debt facility funded equally on a 50:50 basis between REC and PFC.
The project incorporates an air-cooled condenser system and advanced thermal technology designed to optimize operational efficiency at the site located in Meja Tehsil.
Representatives from the participating entities executed the documentation at Prayagraj. MUNPL Chief Executive Officer Srinivasa Rao Gaddamanugu, REC Lucknow Regional Office Chief General Manager Shambhu Shankar Gupta, and PFC General Manager Shelly Gupta signed the agreement.
Key officials attending the ceremony included MUNPL Chief Financial Officer Angshu Barua, PFC Executive Director H. K. Das, and REC Executive Director D. B. Londhe.
The proposed 3x800 MW expansion project brings wide-ranging benefits to the region. The addition strengthens energy security across Uttar Pradesh, ensuring reliable electricity supply for residential, agricultural, and industrial consumers to support state growth targets.
The advanced technology utilized in the plant reduces coal consumption and emissions compared to older generation units, making power production more efficient and environmentally responsible.
Construction and operational phases will generate employment while upgrading local infrastructure in Prayagraj. The completed units will supply stable power to support industrial corridors, manufacturing clusters, and expanding urban areas.
— ANI
Reader Comments
Rs 26,850 crore for 2,400 MW... that's a lot of money. But if it means reliable power for our farmers and small businesses, it's worth it. Just hope the project stays on schedule and doesn't face cost overruns like many others.
Finally some concrete action on the power front! The air-cooled condenser system is particularly smart for a place like Prayagraj where water scarcity can be an issue. Good engineering decision. 💡
It's good that they're using advanced tech to reduce emissions, but shouldn't we be investing more in renewables instead of thermal? I know we need baseload power, but the future has to be solar and wind. Just my two paise.
Impressive scale of financing. This shows India's commitment to energy security while being mindful of environmental concerns through advanced technology. Good to see PSUs collaborating effectively.
I just hope the electricity reaches the rural areas at affordable rates. Industrial corridors are fine, but our farmers still struggle with power cuts during peak seasons. This should help if the distribution network is also upgraded.
Good for Prayagraj's development! The employment generation during construction phase will boost the local economy too. Hope
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.