Rural Electrification Corporation (REC) will extend Rs 2,167 crore to Maharashtra State Electricity Transmission Company Ltd (MSETCL) for financing 4 transmission projects to evacuate power from upcoming projects. REC’s board had cleared the loan in its recent meeting.
These sanctions are in line with the memorandum of understanding (MoU) signed by the two sides last August for cooperation. They leverage their respective strengths and competencies for mutual benefit, upgradation of the existing transmission network and implementation of new transmission schemes to meet the demand of power in the state.
MSETCL has requested financial assistance of Rs. 4,000 crore to its various transmission projects, for which sanction will be accorded by REC over a period of 3 years.
The power utility has plans to establish a robust transmission network with transmission capacity of 30,000-35,000 mw by 2012, an increase of more than 120%.
MSETCL has prepared a five-year rolling plan for 2007-12 and obtained approval from the Maharashtra Electricity Regulatory Commission (MERC) for the establishment of sub-stations and transmission lines from 132 KV to 765 KV.