REC Limited has inked a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to provide financial support of up to Rs. 35,000 Crores for infrastructure projects to be executed by RVNL over the next five years. The collaborative projects include multi-modal logistics hubs, rail infrastructure initiatives, roads, ports, and metro projects where RVNL has expanded its presence.
The MoU was officially signed by Shri Ajoy Choudhury, Director (Finance) of REC, and Shri Rajesh Prasad, Director (Operations) of RVNL. The ceremony took place in the presence of Shri V.K Dewangan, CMD, REC; Shri Sanjeeb Kumar, Director (Finance), RVNL; Smt. Anupam Ban, DPE, RVNL, and other senior officials from REC and RVNL.
About REC Limited
Established in 1969, REC Limited is a Maharatna CPSE under the Ministry of Power. The organization provides long-term loans and various financial products for the power-infrastructure sector, encompassing generation, transmission, distribution, renewable energy, and emerging technologies such as electric vehicles, battery storage, and green hydrogen. REC has recently diversified into the non-power infrastructure sector, covering roads, expressways, metro rail, airports, IT communication, social and commercial infrastructure (educational institutions, hospitals), ports, and electro-mechanical works for various sectors like steel and refinery. The current loan book of REC exceeds Rs. 4,74,275 Crores.
About Rail Vikas Nigam Limited (RVNL)
RVNL, designated as a “Schedule ‘A’ Navratna” Central Public Sector Enterprise under the Ministry of Railways, plays a pivotal role in meeting about 30% of the infrastructure requirements of Indian Railways. Renowned for pioneering the implementation of large infrastructure projects under the PPP model, RVNL primarily focuses on railway projects. It has also diversified its portfolio to include road, port, irrigation, and metro projects, many of which have direct or indirect linkages with railway infrastructure.
The collaboration between REC Limited and RVNL signifies a significant step towards boosting infrastructure development across various sectors in India. The financing arrangement is expected to catalyze the execution of diverse and impactful projects over the next five years.
Also Read | GAIL & TruAlt Bioenergy to Invest USD 72 Million in Compressed Bio Gas for 10 Plants