REC inks pact with JNPA for financing projects up to Rs 45,000 crore

REC will provide funds for JNPA's infrastructure projects, including the Vadhavan port development plan

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Rural Electrification Corporation (REC) Limited signed a memorandum of understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA) to finance various upcoming projects. As part of the MoU, REC will provide funds of up to Rs 45,000 crore for JNPA’s infrastructure projects, including the development of the Vadhavan port.

The MoU is intended to “establish a framework for cooperation between JNPA and REC whereby JNPA implements projects in the infrastructure sector of its expertise,” REC said in a statement.

The MoU was signed by Rahul Dwivedi, executive director of the corporation, and Unmesh Wagh, chairman of JNPA, in the presence of Sarbananda Sonowal, the union minister of ports, shipping, and waterways (MoPSW). Additionally, Sanjay Sethi, additional chief secretary (transport and ports), the government of Maharashtra, and other senior officials from REC and JNPA were also present.

REC is a public sector non-banking financial company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC), which provides loans of different maturities to various entities to build infrastructure assets in the country.

As of 30 June 2024, REC’s loan book stands at Rs 5.30 lakh crore with a net worth of Rs 72,351 crore.

V K Dewangan, chairman and managing director of REC Ltd, in a recent interaction with this paper, had said that while the company will continue to focus on existing schemes, it is looking at a larger shift in its portfolio towards green energy projects, infrastructure segments, and tapping into global climate funds.

JNPA is undertaking India’s largest port development plan, named the Vadhavan project, worth Rs 76,220 crore in Maharashtra, and holds a 74 per cent interest in the project. The Vadhavan port, once built, is expected to rank among the world’s top 10 container-handling ports, as per the MoPSW.