What is the primary objective of the MoU signed between REC Limited and Punjab National Bank (PNB)?

Solution

REC Limited has signed an MoU with Punjab National Bank (PNB) to jointly explore the possibility of funding projects in the Power Sector and Infrastructure & Logistics Sector under a consortium arrangement. REC and PNB will associate with each other to co-finance loans amounting to Rs. 55,000 crores over the next three years. REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, was established in 1969 and provides long-term loans and other finance products for Power sector, comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage and Green Hydrogen. More recently, REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel and Refinery.  The loan book of REC exceeds Rs. 4,54,393 Crore. Punjab National Bank (PNB) is a Public Sector Bank and is involved in banking business across the country with worldwide presence including in the funding of infrastructure Projects. Founded in 1894, PNB is one of the largest Public Sector Banks in the country with Global Gross Business at ₹ 22,14,741 crores.