Jawaharlal Nehru Port Authority (JNPA) and Rural Electrification Corporation (REC) Limited inked a memorandum of understanding (MoU) to finance a number of planned projects. In accordance with the terms of the MoU, REC will contribute up to Rs 45,000 crore to JNPA’s infrastructure initiatives, which include the expansion of the Vadhavan port.
According to REC’s announcement, the goal of the MoU is to “establish a framework for cooperation between JNPA and REC whereby JNPA implements projects in the infrastructure sector of its expertise.”
In the presence of Sarbananda Sonowal, the union minister of ports, shipping, and waterways (MoPSW), Rahul Dwivedi, executive director of the corporation, and Unmesh Wagh, chairman of JNPA, signed the Memorandum of Understanding. The Maharashtra government, Sanjay Sethi, the additional chief secretary (transport and ports), and other top officials from the REC and JNPA were also present.
REC is a public sector infrastructure financing business (IFC), public financial institution (PFI), and non-banking financial company (NBFC). It offers loans to diverse entities for the construction of infrastructure assets in the nation, with varying maturities.
With a net worth of Rs 72,351 crore as of June 30, 2024, REC has a loan book of Rs 5.30 lakh crore.
In a recent interview with this publication, V K Dewangan, chairman and managing director of REC Ltd, stated that although the company will keep its attention on ongoing initiatives, it is considering a more significant portfolio shift towards green energy projects, infrastructure sectors, and utilising international climate funds.
In Maharashtra, JNPA is working on the Vadhavan project, which is India’s largest port development plan. The project is valued at Rs 76,220 crore, and the company owns 74% of the project. According to MoPSW, after it is constructed, the Vadhavan port is anticipated to be among the top 10 container-handling ports in the world.