REC signs MoU with Rail Vikas Nigam for Infrastructure projects
REC signs MoU with Rail Vikas Nigam for Infrastructure projects
The REC Limited signed a MoU with the Rail Vikas Nigam Limited (RVNL) to finance up to Rs 35,000 crore for execution of its infrastructure projects over the next 5 years.
The projects to be executed constitute multi-modal logistics hub projects, rail infrastructure projects, road, port, and metro projects where RVNL has forayed into.
Recently, the REC has also diversified into the non-power infrastructure sector comprising roads & expressways, metro rail, airports, IT communication, social & commercial infrastructure (educational institution, hospitals), ports and electro-mechanical (E&M) works in respect of various other sectors like steel and refinery.
The REC Limited is a Maharatna CPSE established in 1969 under the Ministry of Power providing long-term loans and other finance products for power-infrastructure sector comprising of generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage and green hydrogen.
Notably, the loan book of the REC exceeds Rs 4,74,275 crore.
The RVNL is a Schedule ‘A’ Navratna CPSE under the Ministry of Railways that caters to about 30 per cent of infrastructure requirements of the Indian Railways and has also pioneered implementation of large infrastructure projects under PPP model.
The RVNL is primarily undertaking railway projects and has also made forays into road, port, irrigation and metro projects, many of which have forward and/or backward linkages with Railway infrastructure one way or the other.
In 2023, all the 13 ‘Maharatna’ stocks delivered positive returns, with some of them delivering multibagger returns. In that context, REC remained the best performer last year registering 254 per cent returns.