MUMBAI - REC Ltd, a leading financier of India's power infrastructure under the Ministry of Power, has finalized a significant loan agreement with German state-owned development bank KfW. The €200 million (EUR1 = USD1.0771) loan is aimed at strengthening Indian electricity distribution companies (discoms) within the framework of the Reforms-based and Results-linked, Distribution Sector Scheme (RDSS). This collaboration marks the sixth financial cooperation between India and Germany to improve the operational efficiency and financial health of discoms in line with India's national power sector reforms.
As a pivotal institution providing long-term loans for India's power sector, REC's robust loan book stands at ₹4,74,275 crore (INR100 crore = approx. USD12 million). The company plays a crucial role in supporting the advancement of renewable energy and emerging technologies within the industry. In response to the announcement made today, REC Ltd experienced a positive market reaction with its share price rising to ₹405.85 on the Bombay Stock Exchange (BSE), reflecting a modest uptick of 0.44% in the Sensex index.
The financial engagement is expected to facilitate further development in India's power infrastructure and contribute to the nation's ongoing efforts in achieving sustainable energy goals.
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