REC to lend up to ₹45,000 cr for infra development to JNPA

New Delhi: State-run REC Ltd signed a memorandum of understanding (MoU) with Jawaharlal Nehru Port Authority (JNPA) on August 24 for financing upto ₹45,000 crore for various upcoming projects, including the development of a port at Vadhavan in Maharashtra.

A statement from from REC issued on Sunday said that Rahul Dwivedi, Executive Director, REC signed the MoU with Unmesh Sharad Wagh, Chairman, JNPA in the presence of Sarbananda Sonowal, the Union minister for ports, shipping and waterways.

'MoU to establish framework for cooperation between JNPA, REC'

"This MoU is to establish a framework for cooperation between JNPA and REC whereby JNPA implements projects in the infrastructure sector of its expertise and REC shall provide the required funds," said the statement.

JNPA is an undertaking of the government, and is a premier container handling port, accounting for around 50% of the total containerized cargo volume, across the major ports of India.

The planned mega port at Vadhavan, Palghar district in Maharashtra was approved by the Union cabinet in June this year. It will be constructed by Vadhavan Port Project Ltd (VPPL), a special purpose vehicle formed by JNPA and Maharashtra Maritime Board (MMB) with a shareholding of 74% and 26%, respectively. It will be developed as an all-weather Greenfield deep draft major port.

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The total project cost, including the land acquisition component is estimated at ₹76,220 crore. This will include development of core infrastructure, terminals and other commercial infrastructure as public-private partnerships (PPP).

REC is a 'Maharatna' company under the administrative control of the ministry of power, and primarily is focused in financing power infrastructure sector comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pump storage projects, green hydrogen, green ammonia projects among others.

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Over the past few years REC has also diversified into the non-power infrastructure sector comprising roads and expressways, metro rail, airports, IT communication, social and commercial infrastructure including educational institution, hospitals, ports and electro-mechanical (E&M) works in respect of various other sectors like steel, refinery, among others.

As of June 30 its loan book stood at ₹5.30 trillion and net worth at ₹2,351 crore.

For the first quarter of FY25, it reported a 16.57% rise in its consolidated net profit to ₹3,460.19 crore on the back of higher revenues. In the year-ago period, its net profit stood at ₹2,968.05 crore.

Total income rose to ₹13,092.44 crore from ₹11,108.16 crore in the same period a year ago.