REC Limited, a prominent public sector enterprise operating under the Ministry of Power, has inked a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to extend financial support of Rs 35,000 crore. This substantial funding is earmarked for a slew of ambitious infrastructure projects planned by RVNL, set to unfold over the course of the next five years. These projects encompass a diverse range, including multi-modal logistics hubs, rail infrastructure enhancements, road development initiatives, port expansion endeavours, and metro system expansions, representing RVNL’s strategic diversification into multiple sectors.
Established in 1969, REC Limited is a Maharatna Central Public Sector Enterprise, operating under the aegis of the Ministry of Power. The organization specializes in offering long-term financial solutions, including loans and other financial products, primarily catering to the power-infrastructure sector. This sector encompasses power generation, transmission, distribution, renewable energy, and cutting-edge technologies like electric vehicles, battery storage, and green hydrogen. In recent times, REC Limited has diversified its portfolio to include non-power infrastructure domains such as roads, expressways, metro rail networks, airports, IT communication infrastructure, social and commercial facilities (educational institutions and hospitals), ports, and electro-mechanical works in various sectors, including steel and refineries. Remarkably, REC Limited boasts an extensive loan book exceeding an impressive Rs 4,74,275 crore.
On the other hand, RVNL, “Schedule ‘A’ Navratna” Central Public Sector Enterprise operating under the Ministry of Railways, plays a pivotal role in meeting approximately 30 percent of the infrastructure demands of the Indian Railways. Notably, RVNL has been at the forefront of executing large-scale infrastructure projects under the public-private partnership (PPP) model. While its core focus remains on railway projects, RVNL has ventured into diverse sectors, including road development, port expansion, irrigation projects, and metro system expansions. Many of these initiatives are intricately linked to railway infrastructure in various ways, reinforcing RVNL’s significance in shaping India’s infrastructure landscape.
As of December 31, 2023, according to Projects Today, Rail Vikas Nigam Limited was actively overseeing 35 projects with a cumulative investment value of Rs 26,261.19 crore. Among these, notable projects include the Rs 12,398 crore Kolkata Metro Project Phase II – Expansion, the Rs 4,500 crore Son Nagar-Patratu 3rd Railway Line Project in Bihar, and the Rs 1,000 crore Burama-Chakulia New Railway Line Project in Jharkhand. These initiatives underscore RVNL’s commitment to bolstering India’s infrastructure backbone and fostering economic growth.
