REC Signs Euro Loan with German Bank

  • REC Limited, has signed a 200 million Euro loan agreement with the German bank KfW.
  • Marks REC’s sixth line of credit under the Indo- German Development Cooperation.
  • Demonstrates the corporation’s commitment to enhancing the distribution infrastructure of DISCOMs in line with the Revamped Distribution Sector Scheme (RDSS).
  • It is the nodal agency to implement the RDSS scheme.
  • The government launched the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs.
  • To strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving minimum benchmarks.

REC Limited:

  • It is a Maharatna CPSE established in 1969, under the Ministry of Power.
  • It provides long-term loans and other finance products for the Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc.
  • It has diversified into the Non-Power Infrastructure sector comprising of Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports and Electro-Mechanical (E&M) works.
Posted in Current Affairs.