REC gains on MoU with AP Power and Transmission Corp of AP

REC will provide financial assistance of Rs 3,000 crore to AP Power Generation Corp and Rs 6,000 crore to Transmission Corp of AP

Shares of Rural Electrification Corporation were up over 2% at Rs 272 on the Bombay Stock Exchange after the company entered into an agreement for extending financial assistance to Andhra Pradesh Power Generation Corporation Ltd and Transmission Corporation of Andhra Pradesh Ltd.

The company has signed a memorandum of understanding (MoU) with Andhra Pradesh Power Generation Corporation Ltd to provide Rs 3,000 crore for the proposed 500MW Solar Power Generation Project in Anantapur District of Andhra Pradesh, the company said in a release.

The company has also signed a MoU with Transmission Corporation of Andhra Pradesh Ltd to provide Rs 6,000 crore for several Transmission & System improvement projects coming in the capital region of Andhra Pradesh.

The stock opened at Rs 267 and touched a high of Rs 273. At 12:20PM, over 440,000 shares were traded on both the stock exchanges.