REC Inks MoUs Of Rs 16,000 Cr For Financing Roads & Highways
In a significant move towards fostering collaboration and addressing financing challenges in the Roads and Highways sector, REC, a Maharatna Central Public Sector Enterprise under the Ministry of Power, organised a conference on 'Financing for Roads and Highways.'
During the conference, four Memorandums of Understanding (MoUs) with a cumulative worth of Rs. 16,000 Crore were inked. The signatories included prominent entities in the infrastructure sector, namely Dilip Buildcon, GMR Power & Urban Infra, CDS Infra Projects, and DP Jain & Co. Infrastructure.
These collaborations are poised to play a pivotal role in boosting the financial landscape of the Roads and Highways sector.
The event, held in New Delhi on 8 January, 2024, served as a platform to bring together key stakeholders from the government and industry, including representatives from the Ministry of Road Transport & Highways, National Highways Authority of India, Indian Roads Congress, National Highways Builders Federation, State Road Development organisations, industry policymakers, and developers.
Addressing the gathering, Secretary of the Ministry of Road Transport & Highways, Anurag Jain, outlined the Ministry's vision for sectoral development and emphasised the importance of easing the financing of road projects. He commended the improved quality of roads in India over the recent years and expressed optimism about the growth trajectory of REC and the Ministry working in tandem.
In his welcome address, CMD of REC, Vivek Kumar Dewangan, provided an overview of REC's loan portfolio and highlighted the company's vision for financing non-power infrastructure, with a specific emphasis on the road sector.
Dewangan stressed the pivotal role played by the Roads and Highways industry in India's economic progress, citing government initiatives such as Bharatmala, Sagarmala, and the National Infrastructure Pipeline. He underlined REC’s commitment to providing customised debt financing solutions and being a proactive partner in the sector's expansion.
The conference featured insightful presentations from REC and various Road and Highways agencies, shedding light on unique perspectives regarding financing challenges and opportunities within the sector.
The open forum discussion facilitated the exchange of ideas, allowing both lenders and borrowers to address queries and concerns from Road and Highway developers.
REC, established in 1969, is an NBFC focusing on Power Sector Financing and Development across India. With over fifty years of operations, REC has significantly contributed to financing projects in the power sector value chain, including Generation, Transmission, Distribution, and Renewable Energy.
Recently diversifying into financing the infrastructure and logistics sector, REC's Loan Book stands at Rs 4.54 Lakh Crore at the end of the first quarter of the current financial year.
The conference marks another step in REC's commitment to supporting the Roads and Highways industry and fostering collaborative efforts for its sustained growth.
