REC signs 200 million euro loan with German lender KfW

New Delhi: Maharatna PSU under the Union power ministry REC Limited has signed a 200-million euro loan agreement with the German developmental bank KfW.

The company in a statement said this marks REC's sixth line of credit under the Indo-German development cooperation and demonstrates the commitment to enhance the distribution infrastructure of discoms in line with the revamped distribution sector scheme (RDSS) of the Centre.

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REC is the nodal agency to implement the RDSS scheme, launched to help discoms improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to them by helping strengthen their supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks.

The collaboration with KfW is expected to have a transformative impact on the operational capabilities and financial resilience of discoms, contributing to the broader goals of the RDSS scheme and the nation's power sector reforms.

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