REC, Bank of Baroda join hands to finance power, infrastructure and logistics projects

REC Limited has signed a memorandum of understanding (MoU) with Bank of Baroda to facilitate joint lending to finance power, infrastructure and logistics projects in the country over the next three years.

Shared loans will help sustain financing while meeting the need to fortify these critical sectors and bolster the nation's infrastructural backbone, REC stated in a release.

As per the MoU signed on Wednesday, both REC and BoB will pool resources and expertise, while taking initiatives to invigorate economic development and enhance accessibility to essential services nationwide.

The MoU was signed on January 3, 2024 in the presence of Chairperson and, Shri Vivek Kumar Dewangan and Managing Director & CEO, Bank of Baroda, Shri Debadatta Chand along with Executive Director, Bank of Baroda, Shri Lalit Tyagi.

This MoU will help “accelerate the realisation of pivotal projects crucial to the nation’s progress," Vivek Kumar Dewangan, chairman and managing director (CMD) of REC Limited, said.

“This MoU will enable Bank of Baroda and REC to jointly finance Power (including renewable power), infrastructure and logistics projects … we will see a rise in capital expenditure and private investment and an increasing need for collaborative and innovative financing structures,” Debadatta Chand, managing director and CEO, Bank of Baroda, said.

REC Limited, a Maharatna central public sector enterprise under the ministry of power, provides long-term loans and other finance products for power-infrastructure sector comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage and green hydrogen.