REC, RVNL in MoU to finance multi-modal infra projects worth ₹35,000 cr

livemint.com:

REC Ltd has entered into an MoU with Rail Vikas Nigam Ltd (RVNL) to extend loans up to ₹35,000 crore to finance multi-modal infrastructure projectsto 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 bring developed by RVNL, a power ministry statement said.

REC Ltd, a maharatna public sector established in 1969, under the 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 ₹4.74 trillion as per latest data. RVNL, a schedule ‘A’ navratna public sector enterprise under the ministry of railways, caters to about 30% of infrastructure requirements of the 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. Director (Finance), REC, Ajoy Choudhury, and Director (Operations), RVNL, Rajesh Prasad signed the MoU in the presence of V.K.