Rajasthan CM Bhajan Lal Sharma and REC Limited Sign Rs 3 Lakh Crore Deal for State Infrastructure
REC Limited, a Maharatna CPSU under the Ministry of Power, has signed a Memorandum of Understanding (MoU) with the Rajasthan government to provide Rs 3 lakh crore in funding for infrastructure projects in the state. According to a statement from the company, REC will provide Rs 50,000 crore annually, an increase from the previous Rs 20,000 crore, to finance projects across power and non-power infrastructure for a period of six years up to 2030.
The state’s infrastructure sector projects, including those related to power, metros, roads, highways, airports, IT, steel, oil refinery, ports, waterways, fibre optics, telecom, health, tourism, and other infrastructural projects, are expected to rapidly increase as a result of this MoU.
The MoU was signed between REC Limited and the Department of Finance during the ‘Rising Rajasthan Investors meet’ on Tuesday. Earlier, on March 10, 2024, an MoU was signed in Jaipur between REC and the Government of Rajasthan to finance Rs 20,000 crore annually until 2030.
REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with the RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC). REC finances the entire Power-Infrastructure sector, including Generation, Transmission, Distribution, Renewable Energy, and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, and Green Ammonia projects.
More recently, REC Limited has also diversified into the Non-Power Infrastructure sector, including Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works in various other sectors like Steel and Refinery. REC Limited provides loans of various maturities to State, Central, and Private Companies for the creation of infrastructure assets in the country.
Doubts Revealed
Rajasthan CM -: Rajasthan CM stands for Chief Minister of Rajasthan. The Chief Minister is the head of the government in the state of Rajasthan.
Bhajan Lal Sharma -: Bhajan Lal Sharma is the name of the current Chief Minister of Rajasthan.
REC Limited -: REC Limited is a company that provides money for big projects. It helps build things like roads, airports, and power plants.
Rs 3 Lakh Crore -: Rs 3 Lakh Crore is a very large amount of money. In Indian currency, 1 lakh is 100,000, so 3 lakh crore is 3 trillion rupees.
Maharatna CPSU -: Maharatna CPSU means a very important company owned by the Indian government. CPSU stands for Central Public Sector Undertaking.
Ministry of Power -: The Ministry of Power is a part of the Indian government that looks after electricity and energy in the country.
MoU -: MoU stands for Memorandum of Understanding. It is an agreement between two parties to work together on something.
Infrastructure projects -: Infrastructure projects are big construction projects like building roads, airports, hospitals, and power plants.
Rising Rajasthan Investors meet -: Rising Rajasthan Investors meet is an event where people and companies come together to discuss and invest in projects in Rajasthan.
