REC Signs MoU worth Rs. 39K crore with Karnataka
MOUs were signed between REC Limited and KPCL & BESCOM on 3rd February, 2017 in presence of Hon’ble Chief Minister of Karnataka, Shri Siddharamaih and Energy Minister Shri D. K. Shivakumar for extending a financial assistance to the tune of Rs.39,121 crore to the power utilities in the state for the next five years (till March, 2022).
As per the MOU, KPCL can avail a debt of Rs.27,121 crore for generation projects and other loan requirements. BESCOM can avail a debt of Rs.12,000 crore for implementation of Distribution projects in the state for strengthening, augmentation, upgradation of distribution infrastructure, sub-transmission system, new distribution, under-ground cabling works, R&M works, works under DDUJGY & IPDS, implementation of smart grid, smart meters, procurement of various materials, creation of distribution infrastructure for releasing agricultural services and working capital/operational funding requirements, special loan requirements & works for Smart Cities, etc.
Apart from financial assistance power utilities have agreed to avail consultancy and management services from REC’s subsidiaries for their various activities/projects for the next five years.