REC Ltd, a NBFC and Maharatna Central Public Sector Enterprise under the Ministry of Power, has formalised a Memorandum of Understanding (MoU) with the Government of Rajasthan to extend financial support to projects spanning power and non-power infrastructure sectors. The agreement entails REC providing loans of up to Rs 20,000 crore annually for the next six years to various departments, undertakings, institutions, and schemes of the Government of Rajasthan.
This collaboration is poised to trigger a surge in infrastructure projects across Rajasthan, encompassing power initiatives, metros, roads & highways, airports, IT infrastructure, oil refineries, steel infrastructure, ports & waterways, fiber optics, telecom, health sector, tourism infrastructure, agriculture, and other vital projects. REC’s commitment to fostering the development of both power and non-power infrastructure in Rajasthan aligns with its dedication to contributing to the state’s economic growth and prosperity.
The MoU signing ceremony, held in Jaipur, featured key dignitaries including Chief Minister Bhajan Lal Sharma, Deputy Chief Minister Diya Kumari, and Minister of State for Energy Heera Lal Naagar. Notable figures such as Chief Secretary Sudhansh Pant, Union Coal Secretary Amrit Lal Meena, and CMDs of NTPC, Powergrid, NLC India, and Director of Coal India were also in attendance.
Union Minister for Power and New & Renewable Energy R. K. Singh and Union Minister for Coal Prahlad Joshi expressed their best wishes for the initiatives undertaken by the Government of Rajasthan via video conference during the event.
REC Ltd CMD, Vivek Kumar Dewangan, remarked, “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 the development of other infrastructure sectors.”
The ceremony also witnessed the signing of MoUs worth Rs. 1.6 lakh crores with the Government of Rajasthan by Central Public Sector Undertakings (CPSUs) under the Ministry of Power and Ministry of Coal, marking a substantial commitment towards bolstering infrastructure development and driving economic growth in the region.
REC Ltd, as a ‘Maharatna’ Central Public Sector Enterprise, operates under the Ministry of Power and is registered with RBI as a Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC). REC’s loan portfolio covers the entire Power-Infrastructure sector, and it has recently diversified into Non-Power Infrastructure, contributing to Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, Ports, and Electro-Mechanical (E&M) works in various other sectors.
The loan book of REC stands at Rs 4.97 lakh crore, and net worth is Rs 64,787 crore as of 31st December 2023. The company continues to play a pivotal role in the flagship schemes of the government for the power sector and has been a nodal agency for key initiatives, including Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA) and Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY). REC has also been designated as the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS).