New Delhi [India], January 26 : In a move towards accelerating the growth of renewable energy projects and large-scale infrastructure endeavours in India, Rural Electrification Corporation Limited (REC), a Maharatna Central Public Sector Enterprise under the Ministry of Power, has entered into a Memorandum of Understanding (MoU) with the National Investment and Infrastructure Fund Limited (NIIFL).
According to a press release by the Ministry of Power, the collaborative effort aims to develop innovative funding solutions that will support key projects driving the nation's progress.
The MoU was officially signed by Daljeet Singh Khatri, Executive Director (Finance) of REC, and Prasad Gadkari, Executive Director and Chief Strategy Officer of NIIFL. The signing ceremony was graced by Vivek Kumar Dewangan, CMD of REC, and Rajiv Dhar, CEO and MD of NIIFL.
Speaking about this agreement, Chief Managing Director (CMD) of REC, Vivek Kumar Dewangan, emphasized the commitment to fueling India's growth through strategic financial partnerships.
He stated, "Empowering India's growth through strategic financial partnerships, REC Limited remains steadfast in its commitment to fuelling the nation's progress. Our commitment to financing key infrastructure projects echoes our shared vision for a robust and interconnected future."
Executive Director & Chief Strategy Officer of NIIFL, Prasad Gadkari, highlighted the alignment of this collaboration with NIIF's broader strategy to enhance financing and attract private capital into the infrastructure sector.
He stated, "The collaboration with REC aligns perfectly with NIIF's broader strategy to enhance financing and attract private capital into the infrastructure sector. Through this partnership, we aim to develop innovative financial solutions supporting major infrastructure."
The collaboration comes at a crucial juncture when India is intensifying its efforts to transition towards cleaner and sustainable energy sources.
REC, as a Maharatna Central Public Sector Enterprises (CPSE), is at the forefront of financing projects across the power and non-power infrastructure sectors.
Its diverse portfolio includes initiatives in generation, transmission, distribution, renewable energy, and emerging technologies like Electric Vehicles, Battery Storage, Green Hydrogen, and Green Ammonia projects.
REC's foray into the non-power infrastructure sector involves investments in Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, including Educational Institutions and Hospitals.
The company also plays a key role in flagship government schemes, such as Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA) and Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), contributing significantly to the electrification and strengthening of last-mile distribution systems.
As of December 31, 2023, REC's loan book stands at an impressive Rs 4.97 Lakh Crore, with a net worth of Rs. 64,787 crores.
The collaboration with NIIFL positions REC as a strategic player in the evolving landscape of renewable energy and infrastructure financing, driving India towards a more sustainable and interconnected future.
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