Impressed with the massive rural electrification work in Andhra Pradesh, the Rural Electrification Corporation (REC) has agreed to provide an additional loan of Rs 1,000 crore under the high-voltage distribution system programme in the state.
The programme is meant to improve the voltage in rural areas for agricultural pumpsets and other connected loads, and to reduce transmission losses.
The Rural Electrification Corporation had earlier sanctioned a loan of Rs 1,105 crore for the rural electrification programme in the state.
The decision to grant additional loan was announced by Uma Pilla, chairman and managing director of the Rural Electrification Corporation, while reviewing the progress of works taken up under the programme at a meeting here with officials of Transmission Corporation of Andhra Pradesh (APTransco).
REC has also accepted the request of APTransco to reduce the lending rate from 9.75 per cent to 9.25 per cent.
Pilla said Andhra Pradesh would be the biggest benificiary in the annual funding for the implementation of several REC schemes to improve the quality and reliability of power supply in rural areas.
Thanking the Rural Electrification Corporation for its decision, Rachel Chatterjee, chairman and managing director of APTransco, said reforms were being implemented vigorously in the state for the betterment of the power sector.
