The Rural Electrical Corporation, a Navaratna enterprise of the central government, will provide loan to a tune of 24 thousand crore rupees for the power projects in Telangana state to generate over 6000 Mega Watt. A Memorandum of Understanding has been signed between the Rural Electricity Corporation, REC and the state Electricity Generation Corporation recently to achieve financial closure.According to the state Government, the central REC has cut the interest rate by 0.5 per cent for Telangana compared to other states. This will benefit the state by 600 crore rupees. With the assistance of the REC, three major projects are proposed to be established to reduce the acute shortage of electricity supply presently the state is facing. The proposed projects include eight hundred Mega Watt thermal station at Kothagudem, one thousand 80 Mega Watt at station at Manuguru in Khammam district and four thousand four hundred Mega Watt project at Damecherla in Nalgonda district. The REC will provide financial assistance to the rural electrification, generation and transmission of electricity projects in Telangana.