REC Limited, a leading non-banking finance company under the Ministry of Power, has signed an agreement to provide a term loan of Rs 1,869.265 crore to Chenab Valley Power Project Private Limited (CVPPPL).
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The financing will be utilized for the development, construction, and operation of the 624 MW Kiru Hydro Electric Project on the Chenab river in Kishtwar district of Jammu and Kashmir.
The run-of-river Kiru project envisages the construction of a 135-meter-high dam and an underground powerhouse with four units of 156 MW each. The agreement was signed in the presence of senior officials from both REC Limited and CVPPPL.
CVPPPL is a joint venture between NHPC (51%) and JKSPDC (49%), formed to harness the hydropower potential of the Chenab river. Incorporated in 2011, the company has been entrusted with the construction of four hydro projects with a total installed capacity of 3,094 MW on a Build, Own, Operate and Maintain (BOOM) basis.
As a Maharatna Central Public Sector Enterprise and a non-banking finance company registered with the RBI, REC Limited finances the entire power infrastructure sector, including generation, transmission, distribution, renewable energy, and new technologies. The company has also diversified into non-power infrastructure sectors such as roads, metro rails, airports, IT communication, and social infrastructure.
REC has played a strategic role in flagship government schemes for the power sector, including Saubhagaya, DDUGJY, and NEF, which have strengthened the distribution system, achieved 100% village electrification, and household electrification in the country. The company has also been designated as the nodal agency for certain states and union territories under the Revamped Distribution Sector Scheme (RDSS).
With a loan book of Rs 4.97 lakh crore and a net worth of Rs 64,787 crore as of December 31, 2023, REC continues to support the growth of power and infrastructure projects across the country.
