New Delhi/Prayagraj REC Limited and Power Finance Corporation (PFC) Limited, two Maharatna Central Public Sector Enterprises (CPSEs) under the Ministry of Power, have signed a Common Loan Agreement worth ₹26,850 crore with Meja Urja Nigam Private Limited (MUNPL) to finance the development of the 2,400 MW Meja Thermal Power Project (Stage-II) in Prayagraj, Uttar Pradesh.
The project represents one of the country’s major power infrastructure investments and is expected to significantly strengthen Uttar Pradesh’s power generation capacity, while supporting industrial growth and energy security through the deployment of ultra-supercritical thermal power technology.
Major Financing for Meja Stage-II Project
The ₹26,850 crore loan will finance the establishment of Stage-II of the Meja Thermal Power Project, comprising three ultra-supercritical generating units of 800 MW each (3×800 MW), with a total installed capacity of 2,400 MW.
The project will be developed at Meja Tehsil in Prayagraj District, Uttar Pradesh, and will utilize an Air Cooled Condenser (ACC) system, a technology designed to reduce water consumption compared to conventional cooling systems.
The total estimated project cost is ₹38,357.81 crore.
REC Leads the Financing Consortium
Under the financing arrangement, REC Limited will serve as the lead lender, while both REC and PFC will contribute equally to the funding.
The financing structure includes:
- Total Loan Amount: ₹26,850 crore
- Funding Pattern: 50:50 by REC and PFC
- Lead Financier: REC Limited
The partnership reflects the continued role of India’s leading infrastructure financing institutions in supporting large-scale energy projects.
About MUNPL
Meja Urja Nigam Private Limited (MUNPL) is a 50:50 joint venture between:
- NTPC Limited
- Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL)
The joint venture was established to develop thermal power infrastructure in Uttar Pradesh and enhance reliable electricity generation for the state.
Loan Documents Signed in Prayagraj
The loan documents were formally signed in Prayagraj, Uttar Pradesh, by senior representatives of the participating organizations.
The agreement was signed 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 attended by:
- Angshu Barua, Chief Financial Officer, MUNPL
- H. K. Das, Executive Director, PFC
- D. B. Londhe, Executive Director, REC
The event marked an important milestone in the financial closure process for the large-scale power project.
Ultra-Supercritical Technology for Higher Efficiency
The Meja Stage-II Project will be based on ultra-supercritical technology, which offers significant operational and environmental advantages over conventional coal-fired power plants.
Key benefits include:
- Higher thermal efficiency
- Reduced coal consumption
- Lower greenhouse gas emissions
- Improved operational performance
- Enhanced environmental sustainability
The project will also incorporate an Air Cooled Condenser (ACC) system, helping reduce dependence on water resources while improving overall plant efficiency.
Boost to Uttar Pradesh’s Energy Security
Once operational, the 2,400 MW thermal power plant is expected to substantially strengthen Uttar Pradesh’s energy security by ensuring a more reliable electricity supply for:
- Households
- Agriculture
- Commercial establishments
- Industrial consumers
The additional generation capacity will support the state’s increasing electricity demand driven by rapid urbanization, industrialization, and economic expansion.
Economic and Employment Benefits
Beyond power generation, the project is expected to deliver significant economic benefits.
According to project stakeholders, the development will:
- Generate thousands of employment opportunities during construction and operations.
- Improve local infrastructure in Meja Tehsil and surrounding areas.
- Support industrial corridors and manufacturing clusters.
- Facilitate urban expansion through reliable electricity availability.
- Contribute to regional economic development in Uttar Pradesh.
The project is expected to serve as an important catalyst for industrial investment and long-term economic growth.
Strengthening India’s Power Infrastructure
The financing agreement highlights the continued commitment of REC and PFC toward supporting India’s expanding power sector.
As leading infrastructure financing Non-Banking Financial Companies (NBFCs) under the Ministry of Power, both institutions play a crucial role in funding large-scale electricity generation, transmission, and distribution projects that contribute to the country’s energy transition and infrastructure development.
The Meja Thermal Power Project Stage-II is expected to become a significant addition to India’s power generation portfolio while balancing efficiency, reliability, and environmental considerations.
Key Highlights
- REC Limited and PFC Limited have signed a ₹26,850 crore Common Loan Agreement with Meja Urja Nigam Private Limited (MUNPL).
- The financing will support the development of the 2,400 MW Meja Thermal Power Project (Stage-II) comprising three 800 MW ultra-supercritical units.
- The total estimated project cost is ₹38,357.81 crore.
- REC will act as the lead financier, with the loan funded equally by REC and PFC on a 50:50 basis.
- MUNPL is a 50:50 joint venture between NTPC Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL).
- The project will utilize an Air Cooled Condenser (ACC) system, improving water efficiency and reducing environmental impact.
- The project is expected to strengthen Uttar Pradesh’s energy security, generate thousands of jobs, enhance industrial development, and improve regional infrastructure.
Source: Official announcement by REC Limited, Power Finance Corporation (PFC) Limited, and Meja Urja Nigam Private Limited (MUNPL) regarding the signing of the ₹26,850 crore Common Loan Agreement for the Meja Thermal Power Project (Stage-II) on July 30, 2026.
