REC signs MoU with Rail Vikas Nigam to Finance Multi-Modal Projects over next 5 Years
FinTech BizNews Service
Mumbai, January 3, 2024: REC Limited has entered into an MoU with Rail Vikas Nigam Limited (RVNL) to finance up to Rs. 35,000 Crores for Infrastructure Projects to be executed by RVNL over the next 5 years. These projects constitute multi-modal logistics hub projects, rail infrastructure projects, road, port, and metro projects where RVNL has forayed into.
Director (Finance), REC, Shri Ajoy Choudhury and Director (Operations), RVNL, Shri Rajesh Prasad signed the MoU 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.
REC Limited, a Maharatna CPSE established in 1969, under Ministry of Power, provides long-term loans and other finance products for Power-Infrastructure sector comprising of Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage and Green Hydrogen. More recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery. The loan book of REC exceeds Rs 4,74,275 Crore.
RVNL, a "Schedule ‘A’ Navratna” Central Public Sector Enterprise under Ministry of Railways, caters to about 30% of infrastructure requirements of Indian Railways and has also pioneered implementation of large infrastructure projects under PPP model. RVNL is primarily undertaking Railway projects and has also made forays into road, port, irrigation and metro projects, many of which have forward and / or backward linkages with Railway infrastructure one way or the other.
