Rural Electrification Corporation, the entity formed to support power sector projects, has sanctioned a term loan to NTPC Tamil Nadu Power Company for its upcoming Ennore Power plans in Chennai. REC approved a loan of Rs 3,796 crore to 50:50 joint venture between NTPC and Tamil Nadu Electricity Board for the thermal power project.

The project would be completed by 11th plan and will offer additional 1,000 MW thermal power to Tamil Nadu. The first 500 MW unit will be commissioned at Kuruvimedu village in Ennore.

This loan marks the biggest loan from REC for power generation project in the country. Recently, REC entered into MOU with Tamil Nadu Electricity Board for power capacity addition and distribution network development plan in the state. The work for setup of the plant has been awarded to BHEL.

Recently, REC entered the stock market through IPO route. The IPO was subscribed 28 times despite the poor market conditions.