REC commits Rs1.6 lakh crore for infra projects in Rajasthan
13 Mar 2024
REC Limited has signed a memorandum of understanding (MoU) with the government of Rajasthan committing Rs1.6 lakh crore to finance projects across power and other infrastructure sectors.
As per the agreement, REC will provide loans of up to Rs20,000 crore annually to various departments, undertakings, institutions and schemes of the Government of Rajasthan for the next six years.
Besides power sector projects, REC will provide funding to metros, roads and highways, airports, IT infrastructure, oil refinery, steel infrastructure, ports and waterways, fiber optics, telecom, health, tourism infrastructure, agriculture and other infra projects in the state.
The agreement will help enhance the state’s physical infrastructure and give an impetus to economic growth in the region.
REC, a 'Maharatna' central public sector enterprise under the ministry of power, is registered with RBI as a non-banking finance company (NBFC), and Infrastructure Financing Company (IFC).
Started off as a power project finance company, REC now caters to financial needs of the entire power and energy sector, including generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pumped storage projects, green hydrogen and green ammonia projects.
REC recently diversified its financing lines to include non-power infrastructure such as roads and expressways, metro, airports, IT and communication, social and commercial infrastructure like educational institutions and hospitals as also ports and electro-mechanical works related to sectors like steel and refinery.
REC provides loans of various maturities to state, central and private companies for creation of infrastructure assets in the country.
