REC Limited Partners with CVPPPL for Kiru Hydro Electric Project: A Strategic Financing Initiative
REC Limited, a distinguished Maharatna Central Public Sector Enterprise and a leading Non-Banking Financial Company (NBFC) under the Ministry of Power, has inked an agreement with Chenab Valley Power Project Private Limited (CVPPPL) to extend financial assistance of ₹1,869.265 crores as Term Loan. This funding will be allocated towards the Development, Construction, and Operation of the Greenfield 4 x 156 MW Kiru Hydro Electric Project situated on the Chenab River in the Kishtwar district of Jammu & Kashmir.
The Kiru Hydro Electric Project, with a total capacity of 624 MW, is designed as a run-of-river scheme, envisioning the construction of a dam with a height of 135 meters and an underground Power House comprising 4 units of 156 MW each.
The signing of the agreement witnessed the presence of key officials including Shri Ramesh Mukhiya, Managing Director; Shri Vasant Hurmade, General Manager (C&P); and Shri Sanjay Kumar Gupta, General Manager (Finance) representing CVPPPL, alongside Deputy General Manager, Shri Pramod Kumar Soni; and Deputy General Manager, Shri Rishabh Jain representing REC Limited.
CVPPPL, a Joint Venture Company between NHPC (51%) and JKSPDC (49%), is a collaborative effort between the Government of India and the Government of Jammu & Kashmir aimed at harnessing the significant hydro potential of the Chenab River. Established in 2011, CVPPPL is tasked with the construction of several hydroelectric projects, including the Kiru Hydro Electric Project (624 MW), Pakal Dul Hydro Electric Project (1000 MW), Kwar Hydro Electric Project (540 MW), and Kirthai-II Hydro Electric Project (930 MW), with a cumulative installed capacity of 3094 MW on a Build, Own, Operate, and Maintain (BOOM) basis.
REC Limited, a Maharatna CPSE under the Ministry of Power, functions as a vital player in India’s infrastructure development landscape. Registered with RBI as a Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC), REC extends financial support across the power-infrastructure spectrum, encompassing Generation, Transmission, Distribution, Renewable Energy, and emerging technologies such as Electric Vehicles, Battery Storage, Pumped Storage Projects, Green Hydrogen, and Green Ammonia projects. In recent times, REC has diversified its portfolio to include the Non-Power Infrastructure sector, covering domains like Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, Ports, and Electro-Mechanical (E&M) works across sectors like Steel and Refinery.
REC Ltd. serves as a key financial institution in the implementation of flagship government schemes in the power sector, playing a pivotal role in initiatives such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), and National Electricity Fund (NEF) Scheme, which have significantly enhanced the last-mile distribution system, achieved 100% village electrification, and facilitated household electrification nationwide. REC has also been entrusted with the role of nodal agency for the Revamped Distribution Sector Scheme (RDSS) in certain States and Union Territories.
As of December 31, 2023, REC’s loan book stands at Rs 4.97 Lakh Crores with a Net Worth of Rs. 64,787 crores, underscoring its robust financial position and unwavering commitment to driving infrastructural development in India. Through strategic partnerships and prudent financial interventions, REC Limited continues to play a pivotal role in shaping India’s energy landscape and fostering socio-economic growth across the nation.
