REC and PNB Join Forces for Infrastructure Financing

Priti Palit

2 years ago

Infrastructure Financing

REC Limited has taken a substantial leap in fortifying India’s power and infrastructure sectors through the signing of a Memorandum of Understanding (MoU) with Punjab National Bank (PNB). This strategic alliance aims to delve into financing opportunities within the Power Sector and Infrastructure & Logistics Sector through a consortium arrangement. REC and PNB have united with the ambitious objective of co-funding loans amounting to an impressive Rs. 55,000 crores over the upcoming three years.

Sealing the Covenant: REC and PNB in Concord

The MoU was formalized on September 26, 2023, in Gurugram, with Shri T.S.C Bosh, Executive Director (Infra & Logistics) of REC, and Shri Rajeeva, CGM (Corporate Credit Division) of PNB, affixing their signatures. The signing ceremony enjoyed the presence of prominent figures, including Shri Ajoy Choudhary, Director Finance, REC, and Shri V K Singh, Director (Projects), REC, alongside other senior officials from both REC and PNB.

REC Limited: Energizing Progress

REC Limited, a Maharatna Central Public Sector Enterprise operating under the Ministry of Power, has been a pivotal force in India’s infrastructural advancement since its inception in 1969. REC has primarily focused on providing long-term loans and financial products to the Power sector, encompassing Generation, Transmission, Distribution, Renewable Energy, and advanced technologies like Electric Vehicles, Battery Storage, and Green Hydrogen. Additionally, REC has diversified into the Non-Power Infrastructure sector, encompassing Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works spanning various sectors like Steel and Refinery. With a substantial loan portfolio surpassing Rs. 4,54,393 Crore, REC has been instrumental in propelling India’s infrastructural growth.

Punjab National Bank (PNB): A Banking Titan

Established in 1894, Punjab National Bank (PNB) stands tall as one of the nation’s preeminent Public Sector Banks. PNB plays a significant role in banking activities throughout the country and enjoys a global presence, actively participating in the financing of infrastructure projects. Boasting a Global Gross Business figure of ₹ 22,14,741 crores, PNB is a formidable player in the public sector banking arena.

Conclusion: Infrastructure Financing

The collaboration between REC Limited and Punjab National Bank represents a momentous stride towards financing critical projects in India’s Power and Infrastructure & Logistics sectors. This strategic partnership is poised to catalyze the growth and development of pivotal infrastructural initiatives across the nation.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.