REC Limited, a government-owned entity, has entered into a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) aimed at funding infrastructure ventures valued at up to ₹35,000 crore within the upcoming five years. This partnership emphasizes diverse projects such as multi-modal logistics hubs, rail infrastructure enhancements, road and port developments, as well as metro projects.
Since its establishment in 1969, REC Limited has stood as a distinguished Maharatna CPSE, specializing in extending long-term financial support and loans primarily directed towards the power infrastructure domain. Its focus encompasses a broad spectrum, catering to various facets such as power generation, transmission, distribution, renewable energy, and cutting-edge advancements in sectors like electric vehicles, and battery storage, as well as the promising frontier of green hydrogen. RVNL, classified as a “Schedule ‘A’ Navratna” CPSE and operating under the auspices of the Ministry of Railways, plays a pivotal role by satisfying roughly 30% of the infrastructure requisites within the expansive framework of Indian Railways. Beyond its primary emphasis on railway-centric endeavors, RVNL has diversified its scope, embarking on initiatives in roads, ports, irrigation, and metro sectors. It frequently intertwines these ventures with railway infrastructure projects, thereby amplifying its influence across multifaceted domains.
A formal Memorandum of Understanding (MoU) found its inception through the signatures of Ajoy Choudhury, who serves as the Director (Finance) at REC, and Rajesh Prasad, the Director (Operations) at RVNL. This significant agreement was formalized amidst a ceremonial signing witnessed by esteemed individuals including V.K Dewangan, the CMD of REC; Sanjeeb Kumar, who holds the position of Director (Finance) at RVNL; Anupam Ban representing the Department of Public Enterprises (DPE) within RVNL, alongside several other high-ranking officials hailing from both organizational entities. This financial collaboration encompasses a range of projects, such as multi-modal logistics hubs, rail infrastructure initiatives, and endeavors in the development of roads, ports, and metros. RVNL has significantly broadened its operations within these domains, showcasing an expanded scope and engagement across various sectors of transportation and infrastructure.
REC has broadened its scope beyond power infrastructure domains, venturing into various sectors like roads, expressways, metro rail, airports, IT communication, and social as well as commercial infrastructure encompassing educational institutions and hospitals. The loan portfolio of REC has now surpassed a colossal ₹4,74,275 crore.
