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May 29, 2024

REC Partners with Rajasthan Government to Fund Infrastructure Projects Worth Rs 1.20 Trillion

In a significant move towards advancing infrastructure development in Rajasthan, REC Ltd, a government-owned power sector financier, has sealed an agreement with the Rajasthan government to allocate up to Rs 1.2 lakh crore over six years for various power and infrastructure projects. This strategic collaboration, announced on March 10, marks a substantial commitment towards bolstering economic growth and addressing the evolving energy needs of the region.

Under the agreement inked between REC Ltd, operating under the aegis of the power ministry, and the government of Rajasthan, REC will provide financing of up to Rs 20,000 crore annually for both power and non-power infrastructure sectors. Vivek Kumar Dewangan, CMD of REC Ltd, expressed pride in the collaboration, highlighting its role in enhancing infrastructure development across the state. He emphasized the partnership’s aim to support sustainable growth and meet the growing energy demands of the region while fostering the development of other critical infrastructure sectors.

This partnership signifies REC’s dedication to supporting Rajasthan’s economic prosperity through investments in essential infrastructure. Over the next six years, REC will extend loans totaling up to Rs 20,000 crore annually to various departments, undertakings, institutions, and schemes under the Rajasthan government. This substantial financial injection is poised to catalyze the realization of numerous infrastructure projects, further propelling the state’s economic growth trajectory.

The collaborative efforts between REC and the Rajasthan government are integral to addressing the pressing need for enhanced infrastructure across the state. By providing financial support to both power and non-power infrastructure initiatives, REC aims to contribute significantly to Rajasthan’s economic development and prosperity. The infusion of funds into critical sectors such as power generation, transmission, and distribution, along with investments in other infrastructure segments, will create a robust foundation for sustainable growth and development in Rajasthan.

In addition to the agreement with REC, the Rajasthan government has also entered into several other significant pacts, totaling Rs 1.6 lakh crore, with various central public sector enterprises under the purview of the power ministry and the coal ministry. These collaborative endeavors underscore the collective commitment towards accelerating infrastructure development and driving economic progress in the region.

As of December 2023, REC boasts a substantial loan book amounting to Rs 4.97 lakh crore and a net worth of Rs 64,787 crore. With its strong financial position and unwavering commitment to supporting infrastructure development, REC is poised to play a pivotal role in transforming Rajasthan’s infrastructure landscape and fostering sustainable economic growth.

In conclusion, the partnership between REC Ltd and the Rajasthan government signifies a crucial step towards realizing the state’s infrastructure aspirations. Through strategic investments and collaborative initiatives, REC is poised to catalyze economic development, enhance energy accessibility, and foster inclusive growth across Rajasthan, laying the groundwork for a prosperous future.

Read more Business related news on R9 News

Jhumpa Lahiri

Jhumpa Lahiri

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