REC signs Rs 2,147 crore term loan agreement with CVPPL

New Delhi: REC Limited has signed a term loan agreement worth Rs 2,147.51 crore with Chenab Valley Power Projects Limited (CVPPL) to support the development and construction of the 1000 MW Pakal Dul Hydro Electric Project in Kishtwar, Jammu & Kashmir. The total estimated cost of the greenfield project stands at Rs 12,669.67 crore.

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The agreement was formalized at a signing ceremony held at CVPPL’s Corporate Office in Jammu, attended by CVPPL's Managing Director Ramesh Mukhiya and REC Limited's Chief Project Manager (CPM) Regional Office Jammu Bhupesh Chandolia along with senior officials from both organisations.

The Pakal Dul Hydro Electric Project is being developed on the Marusadar River, a tributary of the Chenab, and is expected to play a crucial role in enhancing renewable energy generation in the region. The project aligns with India’s clean energy transition and will contribute significantly to energy security and sustainable power development in Jammu & Kashmir.

This is not the first instance of financial collaboration between REC and CVPPL. In April 2024, REC had extended a term loan of Rs 1,869.27 crore to CVPPL for the Kiru Hydro Electric Project (4x156 MW), also located in Kishtwar on the Chenab River.

With this latest funding, REC Limited continues to strengthen its position as a key financier of India’s energy infrastructure, particularly in the renewable and hydroelectric sectors.

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