REC Commits Rs 45,000 Crore Financing to JNPA

REC Limited, formerly known as Rural Electrification Corporation Limited, is a subsidiary of Power Finance Corporation Limited, which is owned by the Ministry of Power, Government of India. REC Limited specialises in financing and promoting power projects throughout India.REC is a prominent public sector non-banking financial company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC) dedicated to providing loans of varying maturities to support infrastructure development nationwide. As of June 30, 2024, REC’s loan portfolio stands at an impressive Rs 5.30 lakh crore, with a net worth of Rs 72,351 crore. In a recent discussion, V K Dewangan, the esteemed chairman and managing director of REC Ltd, emphasised the company’s commitment to maintaining its focus on existing schemes. However, he also highlighted REC’s strategic shift towards green energy projects, infrastructure segments, and the utilisation of global climate funds. This forward-thinking approach underscores REC’s dedication to fostering sustainable development and innovation in the financial sector.

REC Limited to finance Rs. 45,000 to JNPA:

REC Limited, a Maharatna PSU under the Ministry of Power and a prominent NBFC, has entered into a Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority (JNPA). This agreement entails providing financial support of up to Rs. 45,000 Crores for a range of upcoming projects, notably the development of Vadhavan Port. 

The Memorandum of Understanding (MoU) was signed by Shri Rahul Dwivedi, IAS, Executive Director of REC, and Shri Unmesh Sharad Wagh, Chairman of JNPA, in the esteemed presence of Shri Sarbananda Sonowal, Honourable Union Minister for Ports, Shipping, and Waterways. Also in attendance were Shri Sanjay Sethi, IAS, Additional Chief Secretary (Transport and Ports) of the Government of Maharashtra, along with senior officials from both REC and JNPA.

The MoU sets the stage for collaboration between JNPA and REC, enabling JNPA to execute infrastructure projects with the financial support provided by REC. JNPA, a government-owned entity, stands out as a prominent container handling port, responsible for handling around 50% of the total containerized cargo volume among key Indian ports.

REC stock price today:

REC stock price is currently trading at Rs. 588.70 per share which is 0.34% up in Intraday and toward the end of the day we can see good move from this stock. 

Conclusion: REC’s financial support and the signed MoU of Rs. 45,000 crore with JNPA will be a game changer for the port.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.