REC Limited, a Maharatna Central Public Sector Enterprise, has inked a momentous Memorandum of Understanding (MoU) with Bank of Baroda, heralding a strategic partnership aimed at jointly financing power, infrastructure, and logistics projects across the nation over the next three years. This groundbreaking collaboration between REC Limited and Bank of Baroda embodies a collective mission to stimulate sustainable development and fortify India’s infrastructural framework.
The MoU, signed on January 3, 2024, marks a pivotal alliance between REC Limited’s expertise in the power sector and Bank of Baroda’s robust financial capabilities. The agreement was formalized in the presence of REC Limited’s Chairperson and Managing Director, Shri Vivek Kumar Dewangan, Managing Director & CEO of Bank of Baroda, Shri Debadatta Chand, and Executive Director of Bank of Baroda, Shri Lalit Tyagi. Highlighting the significance of this alliance, Mr. Dewangan remarked, “This landmark agreement signifies a collaborative effort to accelerate the realization of pivotal projects crucial to the nation’s progress. This partnership marks a significant stride in our commitment to fostering inclusive development.”
The joint financing initiative between REC Limited and Bank of Baroda will cater to power, infrastructure, and logistics sectors, leveraging the strong growth trajectory of the Indian economy. Shri Debadatta Chand emphasized, “With the Indian economy on a strong growth path, we will see a rise in capital expenditure and private investment and an increasing need for collaborative and innovative financing structures.”
REC Limited, established in 1969 under the Ministry of Power, specializes in providing long-term loans and financial products for the power-infrastructure sector, encompassing generation, transmission, distribution, and renewable energy projects. Recently, REC has diversified into non-power infrastructure, extending support to sectors such as roads, metro rail, airports, IT communication, and social & commercial infrastructure.
Bank of Baroda, founded in 1908, is a prominent commercial bank in India with a strong global presence. The bank, majority-owned by the Government of India, caters to a vast customer base through numerous touchpoints across several countries and various digital banking platforms.
The collaboration between REC Limited and Bank of Baroda stands as a testament to their commitment to fostering sustainable growth, driving impactful projects, and steering India towards a brighter future through strategic and innovative financial initiatives.