New Delhi, September 27, 2023 –In a significant move towards bolstering India’s power sector and infrastructure development, REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has recently entered into a Memorandum of Understanding (MoU) with Punjab National Bank (PNB). This collaboration aims to jointly explore funding opportunities for projects in the Power Sector and Infrastructure & Logistics Sector through a consortium arrangement. The strategic partnership between REC and PNB is set to co-finance infrastructure project debts amounting to an impressive Rs. 55,000 crores over the next three years.
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The MoU signing ceremony took place in Gurugram on September 26, 2023, and was attended by key representatives from both organizations. REC’s Executive Director (Infra & Logistics), Shri T.S.C Bosh, and PNB’s CGM (Corporate Credit Division), Shri Rajeeva, formalized the agreement, emphasizing the commitment of both entities to support India’s infrastructure growth.
REC Limited: Powering the Nation’s Progress
REC Limited, with its establishment dating back to 1969, has played a pivotal role in the development of India’s power sector. As a Maharatna Central Public Sector Enterprise under the Ministry of Power, REC has been instrumental in providing long-term loans and various financial products catering to the Power sector’s diverse segments, including Generation, Transmission, Distribution, Renewable Energy, and cutting-edge technologies such as Electric Vehicles, Battery Storage, and Green Hydrogen.
Moreover, REC has been diversifying its portfolio by venturing into the Non-Power Infrastructure sector. This expansion encompasses critical areas like Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works in sectors like Steel and Refinery. Currently, REC’s loan book surpasses a staggering Rs. 4,54,393 Crore, reflecting its significant contribution to the nation’s infrastructure growth.
Punjab National Bank (PNB): Banking with a Global Presence
Punjab National Bank (PNB), founded in 1894, stands as one of India’s largest Public Sector Banks, actively engaged in banking operations across the nation. With a global footprint, PNB has also ventured into funding infrastructure projects, further strengthening its role in the nation’s development. The bank’s Global Gross Business is an impressive ₹ 22,14,741 crores, underscoring its stature in the banking sector.
The collaboration between REC Limited and Punjab National Bank is a testament to their commitment to fortifying India’s power sector and infrastructure development. With an ambitious plan to co-finance infrastructure projects worth Rs. 55,000 crores over the next three years, this partnership is poised to accelerate the nation’s progress.
📌 REC and PNB signed MoU to co-finance Infrastructure Project Debts of Rs. 55,000 crores over the next three years.
📌 REC Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Power.
📌 PNB is a Public Sector Bank with a global presence.
📌 The MoU was signed on September 26, 2023, in Gurugram.
📌 REC provides long-term loans for various sectors, including Power, Infrastructure, and more.
📌 PNB is one of the largest Public Sector Banks in India with a substantial Global Gross Business.
📌 The loan book of REC exceeds Rs. 4,54,393 Crore.
- Summary: REC and PNB have entered into an MoU to jointly co-finance infrastructure projects worth Rs. 55,000 crores over the next three years, with REC being a Central Public Sector Enterprise under the Ministry of Power and PNB being a major Public Sector Bank. This collaboration was formalized on September 26, 2023, in Gurugram, aiming to support various sectors, including Power and Infrastructure.
As India continues to embark on its journey of growth and development, strategic alliances like these play a pivotal role in ensuring the availability of resources and funding for critical projects. REC and PNB’s joint efforts are not only a boon for the power and infrastructure sectors but also a step forward in achieving the vision of a stronger, more developed India.