REC Inks 200 Million Euro Deal with KfW for Dynamic Distribution Sector Reforms
Gurugram: On Friday, 08 Dec.2023. a 200 million Euro loan agreement was signed by REC Limited, a Maharatna CPSE under the Ministry of Power, with the German bank KfW. This transaction, representing REC’s sixth line of credit within the framework of the Indo-German Development Cooperation, manifests the commitment to advancing the distribution infrastructure of DISCOMs in alignment with the Revamped Distribution Sector Scheme (RDSS) of the Government of India (GoI).
The signing ceremony was attended by key dignitaries, including Mr. Wolf Muth, Country Director (India); Ms. Carolin Gassner, Director (South Asia); and Dr. Juergen Welschof, Head of the Division from KfW, accompanied by officials from the German Embassy. Representing REC Ltd., Mr. T.S.C. Bosh, ED (BDM, I&L), along with Smt. Valli Natarajan, ED(SOP), and Mr. Saurabh Rastogi, CGM (BDM), were present at the event.
This event signifies a significant stride in REC’s enduring commitment to reforming the distribution sector in the country, with REC being the nodal agency for implementing the RDSS scheme. The Revamped Distribution Sector Scheme (RDSS) was introduced by the government to assist DISCOMs in enhancing their operational efficiencies and financial sustainability. This is achieved through result-linked financial assistance, strengthening supply infrastructure based on meeting pre-qualifying criteria and achieving fundamental benchmarks.
Mr. Bosh expressed, “This announcement not only highlights REC’s capacity to secure strategic partnerships with international financial institutions but also emphasizes our integral role in propelling positive change within the power distribution landscape in India. The collaboration with KfW is anticipated to exert a transformative impact on the operational capabilities and financial resilience of DISCOMs, ultimately contributing to the broader objectives of the RDSS scheme and the nation’s power sector reforms.” More REC News on NewsIP