REC Ltd’s Subsidiary Signed a MoU to Strengthen Renewable Energy Business

On March 15, 2024, a Memorandum of Understanding (MoU) was signed between REC Ltd wholly-owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), and Bharat Heavy Electrical Limited (BHEL), to build utility-scale renewable energy projects around the nation jointly. The purpose of the Memorandum of Understanding is to use a specific Special Purpose Vehicle (SPV) to support the country’s renewable energy goals.

The infrastructure investment know-how of REC Limited and the core engineering capabilities of BHEL will benefit the SPV. With an initial capacity of 1 GW, which would be later ramped up, the SPV will concentrate on meeting the energy needs of the commercial and industrial (C&I) segment.

The MoU was signed in the presence of CMD, REC, Shri Vivek Kumar Dewangan; CMD, BHEL, Shri Koppu Sadashiv Murthy; Director (Projects), REC, Shri V K Singh; CEO, RECPDCL, Shri Rajesh Kumar and Director, IS&P, BHEL, Ms. Bani Varma.

“We are pleased to announce the signing of an MoU with BHEL for the formation of a joint venture focused on developing utility-scale renewable energy projects. This collaboration brings together our extensive experience in the renewable energy sector with BHEL’s proven expertise in manufacturing and engineering. This SPV will play a crucial role in achieving India’s ambitious renewable energy targets and contributing to a cleaner and greener future.” CMD, REC Ltd

On this occasion, BHEL CMD said that there are ample opportunities available in the RE segment to leverage the joint strengths of both organisations in order to achieve the ambitious targets set by the government of India.

On March 18, 2024, the share price of REC Ltd opened at ₹441.60 and touched the day high of ₹454.75 at 1:30 PM.

About RECPDCL

REC Power Development and Consultancy Limited, a wholly owned subsidiary of REC Limited, has been playing a key role in the power sector value chain by providing knowledge-based consultancy and expert project implementation services to more than 50 State power distribution companies and Power Departments of States for various distribution reform projects of over ₹1 lakh crore.

About REC Limited

REC is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power and is registered with RBI as a Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC). REC finances the entire power infrastructure sector, which comprises generation, transmission, distribution, renewable energy, and new technologies like electric vehicles, battery storage, pumped storage projects, green hydrogen, and green ammonia projects.

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