Rural Electrification Corporation (REC), a leading public infrastructure finance company in India's power sector, has signed Memorandum of Understanding (MoU) with Andhra Pradesh Power Generation Corporation and Transmission Corporation of Andhra Pradesh to provide loan of Rs 90 billion.

REC will provide Rs 30 billion loan to Andhra Pradesh Power Generation Corporation (APGENCO) for the proposed 500 MW Solar Power Generation Project in Anantapur District of Andhra Pradesh.

Transmission Corporation of Andhra Pradesh (APTRANSCO) will get Rs 60 billion loan from REC for various Transmission & System improvement projects coming up in the Capital region of Andhra Pradesh.

Shares of the company gained Rs 6.25, or 2.35%, to trade at Rs 272.15. The total volume of shares traded was 60,579 at the BSE (11.41 a.m., Thursday).