New Delhi: 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 financial assistance of ₹ 1,869.265 crores as Term Loan. The loan will be utilized for the Development, Construction, and Operation of the Greenfield 4 x156 MW Kiru Hydro Electric Project on River Chenab, in the Kishtwar district of Jammu & Kashmir.
The 624 MW Kiru Hydro Electric Project is a run-of-river scheme, which envisages the construction of a dam of height 135 meters and an underground Power House with 4 units of 156 MW each.
The Agreement was signed in the presence of Managing Director, Ramesh Mukhiya; General Manager (C&P), Vasant Hurmade; General Manager (Finance), Sanjay Kumar Gupta from CVPPPL, and Deputy General Manager, Pramod Kumar Soni; and Deputy General Manager, Rishabh Jain from REC Limited.
CVPPPL is a Joint Venture Company between NHPC (51%) and JKSPDC (49%), a joint initiative of the Government of India and the Government of J&K, formed to harness the vast hydro potential of river Chenab. The company was incorporated in 2011. CVPPPL has been entrusted with the construction of the Kiru Hydro Electric Project (624 MW), Pakal Dul Hydro Electric Project (1000 MW), Kwar Hydro Electric Project (540 MW), and Kirthai-II Hydro Electric Project (930 MW) on Build, Own, Operate and Maintain (BOOM) basis with an aggregate installed capacity of 3094 MW.
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 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 Institutions, 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 the creation of infrastructure assets in the country. REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been a nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last-mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). The loan book of REC stands at Rs 4.97 Lakh Crores and Net Worth at Rs. 64,787 crores as of 31st December, 2023.
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