REC Limited has inked three strategic memorandum of understanding (MoUs) in the backdrop of the Madhya Pradesh Global Investors Summit 2023.
The first MoU was signed with the Madhya Pradesh Power Management Company Limited, to extend financial assistance of Rs 150.86 billion for upcoming Sarani and Amarkantak thermal power projects, system improvement works, technology upgradation, and renovation and modernisation. The second MoU was inked with Rewa Ultra Mega Solar Limited (RUMSL) wherein REC will commit a sum of Rs 10 billion as financial assistance for renewable energy projects covering the development of renewable energy parks/projects, and/or associated infrastructure including power evacuation. RUMSL has been designated as solar power park developer by the Ministry of New and Renewable Energy to develop large-scale solar parks in the state of Madhya Pradesh. This project will be a key addition to realise the renewable energy targets of Madhya Pradesh. The state aims to generate 20 per cent of its electricity through renewable sources by 2023-2024, 30 per cent by 2026-27 and 50 per cent by 2029-30. Additionally, REC in partnership with World Bank has designed a financing facility for select state-owned electricity distribution companies. As a part of this REC-World Bank program, the total volume of financing available will be USD1 billion. Under this umbrella, REC committed an amount of Rs 50 billion to Madhya Pradesh discoms to further strengthen the distribution reforms.