Government-owned power sector financier REC Ltd on Monday said it has signed an agreement with the Rajasthan government to provide up to Rs 1.2 lakh crore in six years for power and infrastructure-related projects.
REC Ltd, under the power ministry, signed an agreement with the government of Rajasthan on March 10, according to a statement.
As per the agreement, REC will finance up to Rs 20,000 crore per annum for a period of six years projects across power and non-power infrastructure sectors.
Vivek Kumar Dewangan, CMD, REC Ltd, said in a statement, “We are proud to collaborate with the government of Rajasthan in its mission to enhance infrastructure development across the state. Through this partnership, we aim to support sustainable growth and address the evolving energy needs of the region along with the development of other infrastructure sectors.”
Under this agreement, REC will provide loans of up to Rs 20,000 crore annually for the next six years to various departments, undertakings, institutions, and schemes of the Rajasthan government.
This collaboration underscores REC’s commitment to supporting the development of both power and non-power infrastructure in Rajasthan, thereby contributing to the state’s economic growth and prosperity, the statement said.
Along with the pact with REC, the Rajasthan government also signed several agreements worth Rs 1.6 lakh crore with a number of central public sector enterprises under the power ministry and the coal ministry.
These agreements marked a substantial commitment towards bolstering infrastructure development and driving economic growth in the region.
The loan book of REC stands at Rs 4.97 lakh crore and net worth at Rs 64,787 crore as of December 2023.
The article originally appeared on Business Standard.