The State government on Friday sanctioned Rs. 325 crore towards its equity contribution for the establishment of Bhadradri (Manuguru – 4x270 mw) and Kakatiya Thermal Power Project-II. The funds were sanctioned following a letter written by the Chairman and Managing Director of TSGenco to the government requesting for release of Rs. 654 crore as the government’s equity contribution in setting up of plants. The amount was not released before March 31 since funds were not available and the Finance Department had released it from the 2015-16 budget by relaxing quarterly regulations, the orders issued by Energy Secretary Arvind Kumar said.