REC-CVPPPL Agreement
About REC Limited
- REC is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power, and is registered with RBI as Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC).
- REC finances the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pumped Storage Projects, Green Hydrogen and Green Ammonia projects.
- Recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery.
- REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.
Why in News?
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- REC Limited, a Maharatna Central Public Sector Enterprise and leading NBFC under the Ministry of Power, has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL), under which REC will provide CVPPL with a financial assistance of ₹ 1,869.265 crores as Term Loan.
- CVPPPL is a Joint Venture Company between NHPC (51%) and JKSPDC (49%) formed at the initiative of Government of J&K and Government of India to harness the vast hydro potential of river Chenab. The Company was incorporated in 2011.
- The loan will be utilized for Development, Construction and Operation of the Greenfield 4 x156 MW Kiru Hydro Electric Project on River Chenab, in Kishtwar district of Jammu & Kashmir.
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