REC along with BOI to cofinance projects worth Rs 30,000 cr in next 5 yrs

REC Ltd on Wednesday signed an agreement with Bank of India to co-finance Rs 30,000 crore worth of projects in the power, infrastructure and logistics sectors over the next five years under a consortium arrangement.

REC, a Maharatna company, provides long-term loans and other finance to the power sector. The firm, which has also diversified into areas like roads, metro rails, airports and IT, had a loan book of Rs 4.54 lakh crore as of the June 2023.

Under the agreement, REC and BoI will partner to co-finance loans amounting to Rs 30,000 crore for infra projects implementable over the next five years, REC said in a statement.

Earlier this week, REC Ltd signed deals to finance two green hydrogen, thermal project worth Rs 40,000 crore Odisha Power Generation Corporation (OPGC) and Acme Group.

REC signed an MoU with OPGC to finance Rs 9,538 crore for development of two units of a thermal power project in Jharsuguda, Odisha, the company said in a statement.

The collaboration will contribute significantly to the state's power generation capacity and energy infrastructure, REC said.
 

Under a partnership with Acme Group, REC will provide a funding of Rs 16,000 crore for a green hydrogen and ammonia facility proposed at Gopalpur in the state. It has also entered into an MoU with Avaada Group, pledging Rs 15,000 crore for a green hydrogen and ammonia facility at Gopalpur, REC said. The total worth of all MoUs signed on Monday is Rs 40,538 crore.

REC, under Ministry of Power, is a non-banking finance company (NBFC) focusing on power sector financing in India.