REC to Provide Rs 45,000 Cr to Finance JNPA Projects

New Delhi: On August 24, state-run REC Ltd and the Jawaharlal Nehru Port Authority (JNPA) inked a memorandum of understanding (MoU) for the financing of up to ₹45,000 crore for a number of planned projects, including the construction of a port at Vadhavan, Maharashtra.

In the presence of Sarbananda Sonowal, the Union minister for ports, shipping, and waterways, Rahul Dwivedi, Executive Director of REC, signed the Memorandum of Understanding with Unmesh Sharad Wagh, Chairman of the JNPA, according to a statement released by REC on Sunday.

“MoU to create framework for JNPA and REC cooperation”

“This MoU is to establish a framework for cooperation between JNPA and REC whereby JNPA implements projects in the infrastructure sector of its expertise and REC shall provide the required funds,” the statement read.

A government project, JNPA is a top port for handling containers, carrying around half of all the cargo that is containerized at India’s main ports.

The Union cabinet granted its approval in June of this year for the proposed mega port located in Vadhavan, in the Palghar district of Maharashtra. Vadhavan Port Project Ltd (VPPL), a special purpose vehicle established by the Maharashtra Maritime Board (MMB) and JNPA with respective shareholdings of 74% and 26%, will build it. It will be constructed as a major greenfield deep draft port that is weather-proof.

The anticipated cost of the project, including the land acquisition component, is ₹76,220 crore. This will involve public-private partnerships (PPPs) for the building of terminals, core infrastructure, and other commercial infrastructure.

Under the administrative supervision of the ministry of power, REC is a “Maharatna” company whose primary focus is financing the power infrastructure sector, which includes projects related to generation, transmission, distribution, renewable energy, and new technologies such as green hydrogen, green ammonia, electric vehicles, battery storage, pump storage, and so on.
The non-power infrastructure sector, which includes highways, metro rail, airports, IT communication, social and commercial infrastructure, including schools, hospitals, ports, and electro-mechanical (E&M) works for various other sectors like steel and refineries, is another area into which REC has expanded in recent years.

Its net worth was ₹2,351 crore and its loan book was valued at ₹5.30 trillion as of June 30.

Due to increased revenues, it reported a 16.57% increase in its consolidated net profit for the first quarter of FY25, coming in at ₹3,460.19 crore. Its net profit for the same time last year was ₹2,968.05 crore.

From ₹11,108.16 crore to ₹13,092.44 crore during the same time last year, total income increased.

Mrsinghtv.com