REC Signs MOU with RVNL, BOB, and Gujarat government

REC Sign MOU with Gujarat Government

In a move towards modernizing the power distribution sector REC Power Development and Consultancy, a subsidiary of REC has signed a MoU (Memorandum of Understanding) with the Gujarat government. The ₹2,094 crore investment is earmarked for a smart metering project in Paschim Gujarat Vij Co., as part of Phase 1 of the revamped distribution sector scheme. MoU, signed ahead of the Vibrant Gujarat Summit 2024 outlines the state government's support in obtaining necessary permissions and clearances for the project. This strategic partnership reflects a commitment to enhance efficiency in the power distribution system.

REC Sign MOU with Bank of Baroda

In another development REC Ltd. has entered into a three-year agreement with Bank of Baroda to jointly provide loans for power, infrastructure, and logistics projects. This collaboration announced by the Ministry of Power aims to boost economic development and improve accessibility to essential services nationwide. MoU signing event included key figures such as REC’s CMD, Vivek Kumar Dewangan and Bank of Baroda’s MD & CEO, Debadatta Chand. This partnership aims to boost transformative projects by combining REC's power sector expertise and Bank of Baroda's financial strength.

REC Sign MOU with Rail Vikas Nigam

To strengthen multi-modal infrastructure projects REC Ltd. has signed an MoU (Memorandum of Understanding) with Rail Vikas Nigam Ltd. (RVNL) for loans up to ₹35,000 crore. These funds will support RVNL's projects over the next five years spanning logistics hubs, rail, road, port, and metro initiatives. REC a Maharatna public sector entity under the Ministry of Power specializes in providing longterm loans for diverse projects beyond the power sector including roads, expressways, metro rail, airports and more. RVNL a schedule ‘A’ navratna public sector enterprise under the Ministry of Railways addresses a portion of Indian Railways’ infrastructure needs, including PPP model projects.

Final words

In 2023 REC's stocks soared by a remarkable 254%, the best among the top 13 companies. This growth shows that investors trust REC's plans. Power Finance Corporation came second, with a solid 238% increase. Over the last month, REC's shares went up by 10.21% showing a steady increase. Looking back over the past six months stock grew160.88%. Zooming out to the past year REC shares soared by 254.81% and over the last five years REC has seen a remarkable 362.64% increase.