by Suman Gupta
Gurugram/Jammu, April 2024: REC Limited, a Maharatna CPSE under Ministry of Power and a leading NBFC, has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL) for financial assistance of ₹1869.265 Crore as Term Loan.
The loan will be utilized for Development, Construction and Operation of Greenfield Kiru Hydro Electric Project (4 x156 MW) on River Chenab located in Kishtwar District of Jammu & Kashmir.
The Agreement was signed in the presence of Shri Ramesh Mukhiya, Managing Director; Shri Vasant Hurmade, General Manager (C&P); Shri Sanjay Kumar Gupta, General Manager (Finance) from CVPPPL and Shri Pramod Kumar Soni, Dy. General Manager; Shri Rishabh Jain, Dy. General Manager from REC Limited, among other key officials from both organizations.
Kiru Hydro Electric Project (624 MW), a run-of-river scheme is proposed on river Chenab in district Kishtwar of Union Territory of J&K and is about 42 kms from Kishtwar. The Project envisages construction of 135 m high Dam and an underground Power House with 4 units of 156 MW each.
ABOUT CVPPL: 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 has been incorporated in 2011. CVPPPL has been entrusted with construction of Kiru HE Project (624 MW), Pakal Dul HE Project (1000 MW), Kwar HE Project (540 MW), & Kirthai-II HE Project (930 MW) on Build, Own, Operate and Maintain (BOOM) basis with aggregate installed capacity of 3094 MW.
ABOUT REC LIMITED: REC is a ‘Maharatna’ CPSE under the Ministry of Power, and is registered with RBI as Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pumped Storage projects, Green Hydrogen, Green Ammonia projects etc. 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, Refinery, etc. REC Ltd. provides loans of various maturities to State, Central and Private Companies for 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). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at Rs 4.97 Lakh Crore and Net Worth at Rs. 64,787 crores as on 31st Dec, 2023.
