Prayagraj (Uttar Pradesh) [India], July 31 : State-owned non-banking financial companies REC Limited and Power Finance Corporation Limited (PFC) signed a Rs 26,850 crore common loan agreement with Meja Urja Nigam Private Limited (MUNPL) to finance a 2,400 MW thermal power expansion in Uttar Pradesh, according to a press release.
MUNPL, an equal joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), will use the funds to establish three ultra-supercritical units of 800 MW each under Stage-II of the Meja Thermal Power Project in Prayagraj district.
The overall estimated completion cost of the expansion project stands at Rs 38,357.81 crore. REC Limited serves as the lead financer for the venture, with the total debt facility funded equally on a 50:50 basis between REC and PFC.
The project incorporates an air-cooled condenser system and advanced thermal technology designed to optimize operational efficiency at the site located in Meja Tehsil.
Representatives from the participating entities executed the documentation at Prayagraj. MUNPL Chief Executive Officer Srinivasa Rao Gaddamanugu, REC Lucknow Regional Office Chief General Manager Shambhu Shankar Gupta, and PFC General Manager Shelly Gupta signed the agreement.
Key officials attending the ceremony included MUNPL Chief Financial Officer Angshu Barua, PFC Executive Director H. K. Das, and REC Executive Director D. B. Londhe.
The proposed 3x800 MW expansion project brings wide-ranging benefits to the region. The addition strengthens energy security across Uttar Pradesh, ensuring reliable electricity supply for residential, agricultural, and industrial consumers to support state growth targets.
The advanced technology utilized in the plant reduces coal consumption and emissions compared to older generation units, making power production more efficient and environmentally responsible.
Construction and operational phases will generate employment while upgrading local infrastructure in Prayagraj. The completed units will supply stable power to support industrial corridors, manufacturing clusters, and expanding urban areas.