New Delhi: State-run REC Ltd has signed an agreement with Chenab Valley Power Project Private Limited (CVPPPL) to provide it with a financial assistance of ₹1,869.26 crore as a term loan.
The power ministry said the loan will be utilized for development, construction and operation of the greenfield 4 x156 MW Kiru Hydro Electric Project on River Chenab, in Kishtwar district of Jammu & Kashmir.
The 624 MW Kiru Hydro Electric Project is a run-of-river scheme, which includes building a 135-metre-high dam and an underground power project with 4 units of 156 MW each.
CVPPPL is a joint venture between NHPC and the Jammu and Kashmir Power Development Corporation, which was incorporated in 2011 to harness the hydro power potential of the Chenab river.
CVPPPL has also been given the job of building the Pakal Dul Hydro Electric Project (1000 MW), Kwar Hydro Electric Project (540 MW), and Kirthai-II Hydro Electric Project (930 MW) on a ‘build, own, operate and maintain’ (BOOM) basis with an aggregate installed capacity of 3,094 MW.
A Maharatna
REC is a 'Maharatna' central public sector enterprise under the ministry of power, which finances the power-infrastructure sector comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pumped storage projects, green hydrogen and green ammonia projects.
Recently, REC diversified into the infrastructure sector, particularly 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 and refinery.
It provides loans of various maturities to state, central and private companies for creation of infrastructure assets. At the end of December 2023, its loan book stood at ₹4.97 trillion and net worth at ₹64,787 crore.
On Wednesday, shares of REC on the BSE closed at ₹440, higher by 1.11% from its previous close.
