DECEMBER 9, 2022

REC Limited Inks ₹35,000 Crore MoU with Rail Vikas Nigam for Multi-Modal Projects


New Delhi: REC Limited has inked a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to provide funding of up to ₹35,000 Crores for RVNL's Infrastructure Projects planned over the next 5 years. These projects encompass multi-modal logistics hubs, rail infrastructure, roads, ports, and metro initiatives that RVNL has ventured into. The MoU signing involved REC's Director of Finance, Shri Ajoy Choudhury, and RVNL's Director of Operations, Shri Rajesh Prasad, with the presence of Shri V.K Dewangan (CMD, REC), Shri Sanjeeb Kumar (Director of Finance, RVNL), Smt. Anupam Ban (DPE, RVNL), and other senior officials from both REC and RVNL.

Established in 1969 under the Ministry of Power, REC Limited, a Maharatna CPSE, specializes in providing long-term loans and financial products for the power infrastructure sector. This sector includes Generation, Transmission, Distribution, Renewable Energy, and emerging technologies like Electric Vehicles, Battery Storage, and Green Hydrogen. REC has also diversified into Non-Power Infrastructure, covering Roads, Expressways, Metro Rail, Airports, IT Communication, Social and commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works for various sectors such as Steel and Refinery. REC's loan book currently exceeds Rs 4,74,275 Crore.

On the other hand, RVNL, a "Schedule ‘A’ Navratna” Central Public Sector Enterprise under the Ministry of Railways, addresses approximately 30% of the infrastructure needs of Indian Railways. RVNL has been a trailblazer in implementing large infrastructure projects through the Public-Private Partnership (PPP) model. While its primary focus is on Railway projects, RVNL has also expanded into road, port, irrigation, and metro projects, many of which have interconnections with Railway infrastructure in various ways.

This story has been sourced from PIB.