With a vision to become a leading financial services provider in the renewable energy space, Rural Electrification Corporation (REC) Limited, a non-bank financial institution (NBFC) focusing on power sector financing and development across India, inked three strategic Memorandum of Understanding (MoU) at Madhya Pradesh Global Investors Summit 2023 on January 11.

The first MoU was inked with the Madhya Pradesh Power Management Company Limited (MPPMCL), to extend financial assistance of Rs 15,086 crores for upcoming Sarani and Amarkantak thermal power projects. The agreement will lead to system improvement works, technology upgradation, renovation and modernisation of the projects.

REC signed second MoU with Rewa Ultra Mega Solar Ltd (RUMSL) wherein it committed a sum of Rs 1,000 crores as financial assistance for renewable energy projects. The Ministry of New and Renewable Energy (MNRE) designated RUMSL as Solar Power Park Developer (SPPD) and are to develop large-scale solar parks in Madhya Pradesh. The state aims to generate 20 per cent of its electricity through renewable sources by financial year 2024, 30 per cent by FY 2027 and 50 per cent by FY 2030.

Further, REC partnered with World Bank and designed a financing facility for electricity distribution companies which will avail USD 1 Billion of financing. Under this umbrella REC committed an amount of Rs 5,000 crores to MP DISCOMs to further strengthen the distribution reforms.