REC to give Rs 1, 869.26 crore term loan to CVPPL

25 Apr 2024 , 10:46 AM

REC Limited, a Maharatna Central Public Sector Enterprise and an NBFC under the Ministry of Power has inked a deal with Chenab Valley Power Project Private Limited (CVPPPL) under which REC will give CVPPL with ₹1,869.26 Crore in term loans.

According to a Ministry of Power statement, the loan would be used to develop, construct, and operate the greenfield 4 x 156 MW Kiru Hydroelectric Project on the Chenab River in Jammu and Kashmir’s Kishtwar region.

The 624 MW Kiru Hydro Electric Project is a run-of-river proposal that calls for the construction of a 135-metre-high dam and an underground powerhouse with four 156-MW units each.

The agreement was signed in the presence of CVPPPL’s Managing Director, Ramesh Mukhiya; General Manager (C&P), Vasant Hurmade; General Manager (Finance), Sanjay Kumar Gupta; and REC Limited’s Deputy General Managers, Pramod Kumar Soni and Rishabh Jain.

CVPPPL is a joint venture company founded by NHPC (51%), JKSPDC (49%), and the governments of India and J&K to harness the immense hydro potential of the Chenab River.

The company was formed in 2011. CVPPPL has been awarded the Build, Own, Operate, and Maintain (BOOM) contracts for the Kiru Hydro Electric Project (624 MW), Pakal Dul Hydro Electric Project (1000 MW), Kwar Hydro Electric Project (540 MW), and Kirthai-II Hydro Electric Project (930 MW), totaling 3,094 MW of installed capacity.

Rural Electrification Corporation Ltd was established on July 25, 1969, in New Delhi as a private limited company under the name Rural Electrification Corporation Pvt Ltd. In 1970, the business began lending to SEBs. In 1979, they established CIRE in Hyderabad.

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