New Delhi: REC Limited and Punjab National Bank (PNB) have entered into a Memorandum of Understanding (MoU) to jointly explore opportunities for funding projects in the Power Sector and Infrastructure and logistics Sector through a consortium arrangement. Over the next three years, REC and PNB will collaborate to co-finance loans totalling Rs. 55,000 crores.
Executive Director (Infra & Logistics), REC, Shri T.S.C Bosh, and CGM (Corporate Credit Division), PNB, Shri Rajeeva signed the MoU in Gurugram today, September 26, 2023, in the presence of Director Finance, REC, Shri Ajoy Choudhary; Director (Projects), REC, Shri V K Singh and other senior officials from REC and PNB.
Mentioning the collaboration, the PNB wrote on twitter, ‘PNB has entered into an MoU with REC Limited (formerly Rural Electrification Corporation Limited) for avenues of lending jointly in various potential sectors which are of utmost importance to boost the country’s economy as well as infrastructure.’
REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, was established in 1969. It offers long-term loans and financial products for various sectors in the power industry. These sectors include Generation, Transmission, Distribution, Renewable Energy, and emerging technologies such as Electric Vehicles, Battery Storage, and Green Hydrogen. With its expertise and commitment, REC Limited plays a crucial role in supporting the growth and development of the power sector.
More recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery.
Punjab National Bank (PNB) is a Public Sector Bank and is involved in banking business across the country with worldwide presence including in the funding of infrastructure Projects.