REC Limited and Bank of Baroda Collaborate to Finance Power, Infrastructure, Logistics Projects

GG News Bureau
New Delhi, 5th Jan. REC Limited has recently signed a Memorandum of Understanding (MoU) with Bank of Baroda to jointly provide loans for power, infrastructure, and logistics projects in the country over the next three years.

Recognizing the urgent need to strengthen these critical sectors, REC Limited and Bank of Baroda have come together with a shared vision of promoting sustainable growth and enhancing the nation’s infrastructure.

By combining their resources and expertise, both organizations aim to support initiatives that will stimulate economic development and improve access to essential services across the country.

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

Mr. Dewangan commented on the collaboration, stating, “This significant agreement represents a collaborative effort to expedite the implementation of crucial projects that are vital to the nation’s progress. This partnership is a major step towards our commitment to promoting inclusive development. By leveraging the expertise of REC in the power sector and the financial strength of Bank of Baroda, we aim to catalyze transformative projects that will have a positive impact on communities and drive socio-economic progress.”

Shri Debadatta Chand, Managing Director & CEO of Bank of Baroda, added, “This MoU will enable Bank of Baroda and REC to jointly finance power (including renewable power), infrastructure, and logistics projects. With the Indian economy on a strong growth trajectory, we anticipate an increase in capital expenditure and private investment, creating a greater need for collaborative and innovative financing structures.”

About REC Limited and Bank of Baroda

REC Limited, established in 1969, is a Maharatna Central Public Sector Enterprise under the Ministry of Power. It provides long-term loans and other financial products for the power-infrastructure sector, including generation, transmission, distribution, renewable energy, and new technologies such as electric vehicles, battery storage, and green hydrogen. REC has also expanded into the non-power infrastructure sector, covering areas such as roads, expressways, metro rail, airports, IT communication, social and commercial infrastructure, ports, and electro-mechanical works in various other sectors. REC’s loan book exceeds Rs 4.74 Lakh Crore.

Bank of Baroda, founded in 1908, is one of the leading commercial banks in India. With the Government of India owning a majority stake of 63.97%, the bank serves a global customer base of approximately 165 million through over 70,000 touchpoints across 17 countries. The bank offers a wide range of banking products and services through its digital platforms, aiming to provide a seamless and hassle-free banking experience. The bank’s vision aligns with the aspirations of its diverse clientele and aims to instill trust and security in all their interactions.