New Delhi: REC Limited, a Maharatna Central government public sector enterprise, has entered into an agreement with Bank of Baroda in order to facilitate joint sanctions of loans to fund power, infrastructure and logistics projects in the country over the next three years.
Recognizing the pressing need to fortify these critical domains, REC Limited and Bank of Baroda (BoB) unite with a shared vision of advancing sustainable growth and bolstering the nation’s infrastructural backbone. By pooling resources and expertise, both entities endeavour to champion initiatives that will invigorate economic development and enhance accessibility to essential services nationwide.
Also Read: REC Ltd reports 21% increase in profit for 1st quarter of FY 23-24
The MoU was signed on January 3 in the presence of chairperson and managing director (CMD), REC Limited, Vivek Kumar Dewangan and MD & CEO, BoB, Debadatta Chand along with executive director, BoB, Lalit Tyagi.
Commenting on the collaboration, Dewangan said: “This landmark agreement signifies a collaborative effort to accelerate the realization of pivotal projects crucial to the nation’s progress. This partnership marks a significant stride in our commitment to fostering inclusive development. By harnessing synergies between REC’s expertise in the power sector and Bank of Baroda’s financial prowess, we aim to catalyze transformative projects that will positively impact communities and drive socio-economic progress.”
Also Read: RBI to launch digital currency for inter-banking transaction by Oct
BoB MD & CEO Chand said: “This MoU will enable Bank of Baroda and REC to jointly finance Power (including renewable power), Infrastructure and Logistics projects. With the Indian economy on a strong growth path, we will see a rise in capital expenditure and private investment and an increasing need for collaborative and innovative financing structures.”
Kishtwar’s hydroelectric project to power Rajasthan Urja Vikas Ltd
Ratle Hydro Electric Power Corporation Limited (RHPCL), a joint venture company of NHPC Limited and Jammu and Kashmir State Power Development Corporation (JKSPDC), has entered into a Power Purchase Agreement (PPA) with Rajasthan Urja Vikas and IT Services Limited, for offtake of power generated from 850 MW Ratle Hydroelectric Project, Kishtwar in the union territory of Jammu & Kashmir. The agreement has been signed for offtake of power for a period of 40 years from the Commercial Operation Date (COD) of the project and as per power allocation to be notified by Ministry of Power, Govt. of India.
The PPA was signed in Jaipur on 3rd January, 2024 in the presence of senior officers of RHPCL & Rajasthan Urja Vikas and IT Services Limited.
