This is one of the highest sanctions made by REC for financing a power generation project in the country.
The project which will be commissioned in the 11th plan is likely to add 1000 Mw thermal generation capacity to the state.
The first 500 Mw unit of the project which is coming up at Kuruvimedu village, Ennore near Chennai, is expected to be commissioned in 2010-11. The entire work of the plant is awarded to BHEL, the state owned power equipment major and the site levelling and piling work is in progress.
A memorandum of understanding confirming REC's commitment to the project was signed recently in Chennai.
REC had earlier entered into an MOU with TNEB to provide project finance support of Rs 16,000 crores for the state electricity board's proposed 3000 Mw capacity addition plan and related transmission and distribution net work development schemes, proposed to be implemented during the 11th plan period.
