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June 20, 2024
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“REC Limited commits Rs. 35,000 crores funding for RVNL’s multi-modal infrastructure projects over next 5 years”

New Delhi: REC Limited has recently signed a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to provide financial sopport of up to Rs 35,000 Crores for a range of Infrastructure Projects set to be executed by RVNL over the next five years. These projects encompass multi-modal logistics hubs, rail infrastructure initiatives, road development, port expansions, and metro projects where RVNL has strategically expanded its presence.

The MoU was formally signed by Ajoy Choudhury, Director (Finance) at REC, and Shri Rajesh Prasad, Director (Operations) at RVNL, in the presence of key figures such as Shri V.K Dewangan, CMD at REC; Sanjeeb Kumar, Director (Finance) at RVNL; Anupam Ban, DPE at RVNL, along with other senior officials from both organizations.

Established in 1969, REC Limited, a Maharatna CPSE under the Ministry of Power, specializes in providing long-term loans and financial products for the Power-Infrastructure sector. This sector encompasses Generation, Transmission, Distribution, Renewable Energy, and emerging technologies like Electric Vehicles, Battery Storage, and Green Hydrogen.

In addition, REC has diversified its portfolio to include the Non-Power Infrastructure sector, covering Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works for various sectors like Steel and Refinery. REC’s loan book currently exceeds Rs 4,74,275 Crore.

On the other hand, RVNL, classified as a “Schedule ‘A’ Navratna” Central Public Sector Enterprise under the Ministry of Railways, fulfills approximately 30% of the infrastructure needs of Indian Railways.

Notably, RVNL has been at the forefront of implementing substantial infrastructure projects under the Public-Private Partnership (PPP) model. While RVNL’s primary focus is on railway projects, the organization has successfully ventured into road construction, port development, irrigation projects, and metro initiatives, many of which share direct or indirect connections with railway infrastructure.

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