REC Ltd, NIIFL collaborate on funding solutions for renewable energy, other infra projects

SECI Issues RFS for 1 GW Firm & Dispatchable Renewable Energy

REC Limited has signed a Memorandum of Understanding (MoU) with the National Investment and Infrastructure Fund Limited (NIIFL) to collaborate on a suite of funding solutions for “Renewable Energy Projects” as well as large-scale infrastructure projects in India. REC Ltd is a Maharatna CPSE and also a leading NBFC that comes under the ambit of Power Ministry.

Speaking on the MoU, REC CMD  Vivek Kumar Dewangan said. “Empowering India’s growth through strategic financial partnerships, REC Limited remains steadfast in its commitment to fuelling the nation’s progress. Our commitment to financing key infrastructure projects echoes our shared vision for a robust and interconnected future.”

Executive Director & Chief Strategy Officer, NIIFL, Prasad Gadkari stated, “The collaboration with REC aligns perfectly with NIIF’s broader strategy to enhance financing and attract private capital into the infrastructure sector. Through this partnership, we aim to develop innovative financial solutions supporting major infrastructure.”

Other details of the MoU are yet to be revealed by the two government owned companies.

REC finances the entire Power-Infrastructure sector comprising generation, transmission, distribution, renewable energy. The company also delves in promoting projects and new technologies like Electric Vehicles, Battery Storage, Pumped Storage projects, Green Hydrogen and Green Ammonia.

A statement by the Power Ministry held that REC plays a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme. The objective of the endeavours is to strengthen last-mile distribution system, 100% village electrification and household electrification in India.

REC Ltd’s Rising Role

Recently, announced recently that its board has approved Rs 1.20 lakh crore line of credit for public sector power companies who are willing to implement rooftop solar projects across India. This is meant to give strength to the Pradhan Mantri Suryoday Yojana. CMD Vivek Kumar Dewangan said that REC is designated as the “programme implementation agency” for the new scheme announced by the Prime Minister on the day of Lord Ram’s consecration. Its board of directors has already approved letters of credit of ₹15,000 crore each for eight CPSUs to solarize the rooftops across Indian states.

REC Director VK Singh recently revealed that the government company looks to raise its RE loan portfolio from the present 6 per cent to about 30 per cent by the end of this decade.