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REC Limited and DVC Forge INR 588 Crore Pact to Power Infrastructure Development

The primary objective of the agreements is to enhance cooperation between REC and DVC, particularly focusing on the development of tubed coal mines.

February 15, 2024. By Abha Rustagi

REC Limited, a Maharatna Central Public Sector Enterprise operating under the Ministry of Power and a leading Non-Banking Financial Company (NBFC), has sealed a monumental deal worth INR 588 crores with Damodar Valley Corporation (DVC). This significant agreement is poised to bolster infrastructure and energy projects within the Damodar Valley region.

The primary objective of the agreements is to enhance cooperation between REC and DVC, particularly focusing on the development of tubed coal mines. The comprehensive deal encompasses a Term Loan agreement, an Escrow agreement, and Hypothecation deeds.

The signing ceremony, attended by notable figures including Santosh Kumar Sahu, Senior Chief Project Manager at REC Regional Office, Kolkata, and Durgesh Maity, Senior General Manager (Finance) at DVC, took place in the presence of DVC's Chairman and Managing Director, S. Suresh Kumar, alongside members from DVC’s technical, finance, and administrative teams.

These agreements signify the collaborative efforts of both organizations toward promoting sustainable development and harnessing resources for the betterment of the community. REC and DVC reaffirm their commitment to driving innovation, efficiency, and excellence in the energy sector, thereby fostering positive transformation and prosperity for all stakeholders involved.

DVC, a key public sector entity under the Ministry of Power, is actively engaged in power generation and transmission, catering to the energy requirements of the eastern region of India. REC Limited, on the other hand, stands as a pivotal player in financing and facilitating infrastructure projects across various sectors, particularly in energy.

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Business

REC Ltd

Maharatna CPSE

Damodar Valley Corporation

DVC

Damodar Valley region

Sustainable development