• Business Corporate / Business

REC signs MoU with Govt. of Rajasthan to finance power & infrastructure projects worth Rs. 20,000 Cr annually for next 6 years

• nationalherald
• March 11, 2024

by Prashant Kapadia/NHN

REC Limited, a Maharatna CPSE under the Ministry of Power and a leading NBFC, has signed a Memorandum of Understanding (MoU) on 10^th March, 2024 in Jaipur with the Government of Rajasthan, to finance projects across power and non-power infrastructure sectors with an investment of up to Rs 20,000 crore per annum for a period of six years, extending up to 2030.

The MoU was signed in the presence of several dignitaries including Shri Bhajan Lal Sharma, Hon’ble Chief Minister of Rajasthan; Smt. Diya Kumari, Deputy Chief Minister, Govt.  of Rajasthan; Shri Heera Lal Naagar, Minister of State for Energy, Government of Rajasthan; Shri Sudhansh Pant, Chief Secretary, Government of Rajasthan;  Shri Amrit Lal Meena, Secretary, Ministry of Coal, Government of India; Shri Vivek Kumar Dewangan, CMD, REC; and CMDs from NTPC, Powergrid, NLC India, and Director, Coal India.

Hon’ble Minister of Power and New & Renewable Energy, Shri R. K. Singh and Hon’ble Union Minister of Coal, Shri Prahlad Joshi, addressed the ceremony via virtual conference and extended their best wishes for the initiatives undertaken by the Government of Rajasthan.

Speaking about the agreement, Sh. Vivek Kumar Dewangan, CMD, REC Ltd said, “We are proud to collaborate with the Government of Rajasthan in its mission to enhance infrastructure development across the state. Through this partnership, we aim to support sustainable growth and address the evolving energy needs of the region along with development of other infrastructure sectors.”

Under this agreement, REC Limited will provide loans of upto Rs 20,000 crores annually for next six years to various departments, undertakings, institutions and schemes of the Rajasthan government. With this MoU, there will be a rapid increase in projects related to the state’s infrastructure sector like power projects, metro, roads & highways, airports, IT infra, oil refinery, steel infra, ports & waterways, fiber optics, telecom, health sector, tourism infrastructure, agriculture and other infra projects. This collaboration underscores REC’s commitment to supporting the development of both power and non-power infrastructure in Rajasthan, thereby contributing to the state’s economic growth and prosperity.

On the occasion, MoUs worth Rs. 1.6 lakh crore were signed by Central Public Sector Undertakings (CPSUs) under the Ministry of Power and Ministry of Coal with the Govt. of Rajasthan. These agreements marked a substantial commitment towards bolstering infrastructure development and driving economic growth in the region.

About REC Limited –REC is a ‘Maharatna’ CPSE under the Ministry of Power, and is registered with RBI as Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pumped Storage projects, Green Hydrogen, Green Ammonia projects etc. Recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc. REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been a nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at Rs 4.97 Lakh Crore and Net Worth at Rs. 64,787 crores as on 31st Dec, 2023.