In a major development in the Power and Infrastructure sector, the Rural Electrification Corporation (REC) and Bank of India (BoI) have entered into an agreement to co-finance projects worth Rs 30,000 crore ($40 billion). The partnership was formalized on Thursday, with key officials from both organizations present at the signing.
The agreement will see the two entities jointly finance long-term loans for Power and Infrastructure projects over a five-year timeline. Among the signatories were T.S.C. Bosh from REC and Nitin G. Deshpande from BoI. Other key officials present included Vivek Kumar Dewangan, CMD of REC; Rajneesh Karnatak, MD & CEO of BoI; and Ajoy Choudhury, Director (Finance), REC.
This collaboration brings together two significant players in India's financial landscape. REC is a Maharatna Central Public Sector Enterprise (CPSE) with a loan book of Rs 4.54 lakh crore ($60 billion), primarily dedicated to power infrastructure projects. On the other hand, BoI is a nationalized bank with a strong national presence as well as substantial international operations. It holds a premier position among its peers with a Global Gross Business exceeding Rs. 12.14 Lakh Crore ($160 billion).
The partnership leverages the financial acumen of both organizations to drive critical projects in the Power Infrastructure and logistics sectors forward. REC's commitment to augmenting India's energy infrastructure and logistics forms the cornerstone of this partnership.
The agreement is expected to significantly boost the power and infrastructure sectors in India by ensuring adequate funding for critical projects, thereby contributing to the overall economic growth of the country.
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