New Delhi: State-owned power sector financiers REC Limited and Power Finance Corporation (PFC) Limited have signed a ₹26,850 crore Common Loan Agreement with Meja Urja Nigam Private Limited (MUNPL) for the development of the 2,400 MW Meja Thermal Power Project (Stage-II) in Uttar Pradesh.
The project, being developed by MUNPL, a 50:50 joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), will comprise three ultra-supercritical units of 800 MW each (3×800 MW) equipped with an Air Cooled Condenser (ACC) system at Meja Tehsil in Prayagraj district.
The total estimated cost of the project is ₹38,357.81 crore, while the loan amount sanctioned by REC and PFC stands at ₹26,850 crore.
REC Leads Financing; Loan Shared Equally with PFC
REC, a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power, is the lead financier for the project. The loan has been funded equally by REC and PFC, with each institution contributing 50 percent of the sanctioned amount.
The financing is expected to accelerate the execution of one of Uttar Pradesh’s largest thermal power expansion projects aimed at meeting the state’s growing electricity demand.
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Loan Agreement Signed in Prayagraj
The loan documents were signed in Prayagraj, Uttar Pradesh, by:
- Srinivasa Rao Gaddamanugu, Chief Executive Officer, MUNPL
- Shambhu Shankar Gupta, Chief General Manager, REC Regional Office, Lucknow
- Shelly Gupta, General Manager, PFC
The signing ceremony was held in the presence of:
- Angshu Barua, Chief Financial Officer, MUNPL
- H.K. Das, Executive Director, PFC
- D.B. Londhe, Executive Director, REC
Project to Enhance Uttar Pradesh’s Energy Security
The Meja Thermal Power Project Stage-II is expected to play a key role in strengthening Uttar Pradesh’s power generation capacity and ensuring reliable electricity supply for households, agriculture and industries.
According to REC, the project will support the state’s long-term economic growth by providing dependable power to:
- Industrial corridors
- Manufacturing clusters
- Expanding urban centres
- Agricultural consumers
The additional generation capacity is also expected to improve overall grid stability in the region.
Ultra-Supercritical Technology to Improve Efficiency
The project will deploy ultra-supercritical technology, which is significantly more efficient than conventional coal-based thermal power plants.
Officials said the adoption of advanced technology and the Air Cooled Condenser (ACC) system will help:
- Reduce coal consumption
- Lower emissions compared to older thermal plants
- Improve operational efficiency
- Promote more environmentally responsible power generation
Employment and Infrastructure Boost
Beyond electricity generation, the project is expected to generate substantial economic activity in the Prayagraj region.
During both construction and operational phases, the project is expected to create thousands of direct and indirect employment opportunities while supporting the development of local infrastructure in Meja Tehsil.
The project is also expected to strengthen the availability of quality power for future industrial and urban expansion across Uttar Pradesh.
About REC Limited
REC Limited is a Maharatna public sector enterprise under the Ministry of Power that provides financial assistance for power sector projects across India, including generation, transmission, and distribution infrastructure, as well as renewable energy initiatives.
About Power Finance Corporation
Power Finance Corporation is a leading non-banking financial company (NBFC) under the Government of India that primarily finances power sector projects, supporting infrastructure development, capacity expansion, and clean energy initiatives across the country.
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