REC Limited signed a 200 million Euro loan agreement with the German bank KfW on December 8.
This marks REC’s sixth line of credit under the Indo-German Development Cooperation and demonstrates the corporation’s commitment to enhance the distribution infrastructure of DISCOMs in line with the Revamped Distribution Sector Scheme (RDSS) of the Government of India.
The release from the Ministry of Power said that this occasion marks a significant step in REC’s ongoing commitment to reform the distribution sector in the country. REC is the nodal agency to implement the RDSS scheme.
The government launched the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs to strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks, the release said.
The signing event was graced by Carolin Gassner, Director (South Asia), KfW; Wolf Muth, Country Director (India), KfW; and Dr. Juergen Welschof, Head of the Division from KfW, along with the officials from the German Embassy. T.S.C. Bosh, Executive Director (BDM, I&L) along with Valli Natarajan, Executive Director (SOP) and Saurabh Rastogi, CGM (BDM) attended the event on behalf of REC.
Presenting his view on how the partnership with KfW will enhance India’s power sector, T.S.C. Bosh, Executive Director, said, “This announcement not only showcases REC’s ability to secure strategic partnerships with international financial institutions but also underscores our integral role in driving positive change within the power distribution landscape in India.”
“The collaboration with KfW is expected to have a transformative impact on the operational capabilities and financial resilience of DISCOMs, ultimately contributing to the broader goals of the RDSS scheme and the nation’s power sector reforms,” he added.
