REC signs 200 million euro loan with German Bank KfW to propel distribution sector reforms
Gurugram, 8 December 2023: REC Limited, a Maharatna CPSE under the Ministry of Power, signed a 200 million Euro loan agreement with the German bank KfW on Friday. 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 Government of India (GoI).
The signing event was graced by the presence of 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 along with the officials from the German Embassy. Mr. T.S.C. Bosh, ED (BDM, I&L) along with Smt. Valli Natarajan, ED(SOP) and Mr. Saurabh Rastogi, CGM (BDM) attended the event on behalf of REC Ltd.
This occasion marks a significant step in REC’s ongoing commitment to reform the distribution sector in the country. REC is the nodal agency to implement the RDSS scheme. The government launched the Revamped Distribution Sector Scheme RDSS) to help DISCOMs improve their operational efficiencies and financial sustainability by providing result linked financial assistance to DISCOMs to strengthen supply infrastructure based on meeting pre-qualifying criterial and achieving basis minimum benchmarks.
“This announcement not only showcases REC’s ability to secure strategic partnerships with international financial institutions but also underscores our integral role in driving positive change within the power distribution landscape in India. The collaboration with KfW is expected to have a transformative impact on the operational capabilities and financial resilience of DISCOMs, ultimately contributing to the broader goals of the RDSS scheme and the nation’s power sector reforms,” said Mr. Bosh.