REC signs pacts to finance Rs 16,000 crore worth highway projects
REC Limited has signed four MoUs worth Rs. 16,000 crore with Dilip Buildcon Limited, GMR Power & Urban Infra, CDS Infra Projects Limited & DP Jain & Co. Infrastructure Pvt. Ltd for financing road and highway projects, according to an official statement issued on Tuesday.
The public sector Maharatna company hosted a conference on ‘Financing for Roads and Highways’, to bring all key stakeholders under one roof and to discuss financing aspects of the sector.
The conference was held in New Delhi on Monday and was attended by key stakeholders from the government and industry, including from the Ministry of Road Transport & Highways, National Highways Authority of India, Indian Roads Congress, National Highways Builders Federation, State Road Development organizations, industry policymakers, and developers, the statement said.
Addressing the participants, Secretary, Ministry of Road Transport & Highways, Anurag Jain spoke of the Ministry’s vision for the development of the sector and ease of financing road projects.
He talked about India’s roads and highways journey and said the quality of roads has improved significantly over the last few years.
Along with this, he hoped that REC Limited and MoRTH would grow together.
In the welcome address, CMD, REC Limited, Vivek Kumar Dewangan gave an overview of REC’s loan portfolio, along with the Company’s vision for financing non-power infrastructure, with a special focus on the road sector.
Dewangan said that the Roads and Highways industry in India plays a pivotal role in our economic progress.
“The government’s initiatives like Bharatmala, Sagarmala, National Infrastructure Pipeline have set the stage for expansion in the Roads sector. The need for customized debt financing solutions has never been more pressing. We, at REC Limited, are committed to being a partner in this journey.”
The conference featured presentations from REC and the Road and Highways agencies, highlighting their unique perspectives on financing challenges and opportunities within the sector.
It provided an opportunity for the presentation of both lenders’ and borrowers’ perspectives, followed by an open forum discussion, in which queries of Road and Highway developers were addressed.
REC Limited is an NBFC focusing on Power Sector Financing and Development across India and has recently diversified into financing infrastructure and logistics sector as well.
The Loan Book of REC stood at Rs 4.54 Lakh Crore, at the end of the first quarter of the current financial year.