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REC Ltd and RVNL Forge ?35,000 Crore Partnership to Fuel Diverse Infrastructure Projects REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has formally entered into a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to provide extensive financial support amounting to Rs. 35,000 crore for a broad spectrum of infrastructure projects over the next five years. The collaborative effort encompasses initiatives such as multi-modal logistics hubs, rail infrastructure, road development, port facilities, and metro projects undertaken by RVNL. The MoU was signed by Ajoy Choudhury, Director (Finance) of REC, and Rajesh Prasad, Director (Operations) of RVNL, solidifying the partnership between the two entities. Key officials including VK Dewangan, CMD of REC; Sanjeeb Kumar, Director (Finance) of RVNL; and Anupam Ban, DPE of RVNL, were present to witness this significant agreement. Established in 1969, REC Limited operates as a Maharatna CPSE under the Ministry of Power. Traditionally specializing in long-term financial solutions for the power infrastructure sector, REC has expanded its portfolio to include non-power infrastructure sectors, demonstrating a diversified focus on roads & expressways, metro rail, airports, IT communication, social & commercial infrastructure, ports, and electro-mechanical works for sectors like steel and refinery. The companys impressive loan book currently exceeds Rs. 4,74,275 crore. Rail Vikas Nigam Limited (RVNL), classified as a Schedule A Navratna CPSE under the Ministry of Railways, plays a pivotal role in fulfilling around 30 per cent of Indian Railways infrastructure needs. Beyond railway projects, RVNL has ventured into road development, port facilities, irrigation, and metro projects, aligning with railway infrastructure. This strategic collaboration signifies a crucial step in financing key infrastructure initiatives, contributing significantly to Indias growth trajectory. The signing of the MoU reinforces the commitment of both REC Ltd and RVNL to propel diverse infrastructure projects, thus positively impacting the nations economic development. At the close of 2023, REC stocks achieved the highest returns of 254 per cent among all 13 Maharatnas, as reported by Mint, marking a notable financial performance for the company. |
