REC, IIFCL, Hudco to fund power projects

Rural Electrification Corporation (REC) has signed an agreement with India Infrastructure Finance Company (IIFCL) and Housing and Urban development Corporation (Hudco) to finance power projects of over 1,000 Mw proposed to be set up under public-private partnership.

A consortium of the three companies will fund up to Rs 4,000 crore for each of the proposed power projects.

REC is planning to invest Rs 60,000 crore in generation, transmission and distribution business in the 11th Plan period. The power sector will require investments of Rs10,31,600 crore during the period to add generation capacity besides creating and upgrading transmission and distribution networks.

The government is planning to 78,577 Mw in the 11th Plan (2007-2012) to the existing installed capacity of over 1,30,000 Mw.