Rail Vikas Nigam lines up Rs 35,000 cr from REC for big projects

New Delhi, Jan 3 (IANS) REC has entered into an MoU with Rail Vikas Nigam Ltd (RVNL) to finance up to Rs. 35,000 crore worth infrastructure projects to be executed by RVNL over the next five years, according to an official statement on Wednesday.

These projects constitute multi-modal logistics hub projects, rail infrastructure projects, road, port, and metro projects.

Director (Finance), REC, Ajoy Choudhury and Director (Operations), RVNL, Rajesh Prasad signed the MoU.

REC Limited, a Maharatna CPSE established in 1969, under the Ministry of Power, provides long-term loans and other finance products for Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage and Green Hydrogen.

More recently, 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 loan book of REC exceeds Rs 4,74,275 crore.

RVNL, a "Schedule ‘A’ Navratna” Central Public Sector Enterprise under Ministry of Railways, caters to about 30 per cent of infrastructure requirements of Indian Railways and has also pioneered implementation of large infrastructure projects under PPP model.

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.