REC Limited hosted a conference on ‘Financing for Roads and Highways’ where it signed four MoUs worth Rs 16,000 Crore, Ministry of Power said on Tuesday.
A Maharatna Central Public Sector Enterprise under the Ministry of Power, REC Limited signed MoUs with Dilip Buildcon Limited, GMR Power & Urban Infra, CDS Infra Projects Limited & DP Jain & Co. Infrastructure Pvt. Ltd.
Speaking on the development, Vivek Kumar Dewangan, CMD, REC Limited, gave an overview of REC’s loan portfolio, along with the Company’s vision for financing non-power infrastructure, with a special focus on the road sector.
He said that the Roads and Highways industry in India plays a pivotal role in our economic progress.
“The Government’s initiatives like Bharatmala, Sagarmala, National Infrastructure Pipeline have set the stage for expansion in the Roads sector. The need for customized debt financing solutions has never been more pressing. We, at REC Limited, are committed to being a partner in this journey,” he highlighted.
The aim of the conference was to bring all key stakeholders under one roof and to discuss financing aspects of the sector.
Established in 1969, REC Limited is an NBFC focusing on Power Sector Financing and Development across India. It provides financial assistance to state electricity boards, state governments, central and state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
Addressing the participants, Secretary, Ministry of Road Transport & Highways, Anurag Jain spoke of the Ministry’s vision for the development of the sector & ease of financing road projects.
He talked about India’s roads and highways journey and said the quality of roads has improved significantly over the last few years. Along with this, he hoped that REC Limited and MoRTH would grow together.
The conference was attended by key stakeholders from the government and industry, including from the Ministry of Road Transport & Highways, National Highways Authority of India, Indian Roads Congress, National Highways Builders Federation, State Road Development organizations, industry policymakers, and developers.
The conference featured presentations from REC and the Road and Highways agencies, highlighting their unique perspectives on financing challenges and opportunities within the sector.
It provided an opportunity for the presentation of both lenders’ and borrowers’ perspectives, followed by an open forum discussion, in which queries of Road and Highway developers were addressed.
REC has recently diversified into financing infrastructure and logistics sector as well. Its Loan Book stands at Rs 4.54 Lakh Crore, at the end of the first quarter of the current financial year.
Its business activities involve financing projects in the complete power sector value chain; for various types of projects including Generation, Transmission, Distribution and Renewable Energy. REC’s funding illuminates every fourth bulb in India.
