Transformative Partnership: REC Inks Historic Rs 45,000 Crore Deal with JNPA to Empower India’s Infrastructure
Rural Electrification Corporation Signs MoU with Jawaharlal Nehru Port Authority for Major Infrastructure Projects
The Rural Electrification Corporation (REC) Limited has formalized a significant partnership with the Jawaharlal Nehru Port Authority (JNPA) by signing a memorandum of understanding (MoU) to fund various upcoming projects. Under this agreement, REC will extend financial support up to Rs 45,000 crore for JNPA’s infrastructure endeavors, including the Vadhavan port development.
The MoU aims to create a cooperative framework under which JNPA will carry out infrastructure projects, leveraging REC’s financial backing. This strategic move was solidified in the presence of notable figures such as Sarbananda Sonowal, the Union Minister of Ports, Shipping, and Waterways, along with senior officials from both organizations, including Sanjay Sethi, Additional Chief Secretary (Transport and Ports), Government of Maharashtra.
REC, a key public sector non-banking financial company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC), specializes in providing loans across various maturities to support infrastructure projects in India. As of June 30, 2024, REC’s loan portfolio is valued at Rs 5.30 lakh crore, with a net worth of Rs 72,351 crore.
REC’s Chairman and Managing Director, V K Dewangan, recently highlighted the company’s shifting focus towards green energy projects and infrastructure sectors, with an eye on global climate funds, while maintaining existing schemes.
JNPA’s Vadhavan project, valued at Rs 76,220 crore, represents India’s largest port development plan and holds a 74% stake. Upon completion, the Vadhavan port is poised to rank among the top 10 container-handling ports in the world, according to the Ministry of Ports, Shipping, and Waterways.
First Published: Aug 26, 2024 | 12:06 AM IST
Original Story https://www.business-standard.com/companies/news/rec-inks-pact-with-jnpa-for-financing-projects-up-to-rs-45-000-crore-124082600001_1.html
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