Bridging Horizons: The Rs. 30,000 Cr MoU Between REC Ltd and RailTel

A Strategic Partnership for the Future of Connectivity and Infrastructure Development

In a significant move towards revolutionizing India’s connectivity and infrastructure landscape, REC Limited, a leading Maharatna CPSE established under the Ministry of Power, joined hands with RailTel, a distinguished “Mini Ratna (Category-I)” Central Public Sector Enterprise under the Ministry of Railways, to sign a groundbreaking Memorandum of Understanding (MoU) on November 9, 2023.

This momentous occasion marks REC’s pledge to extend financial assistance of up to Rs. 30,000 Crore for Infrastructure Projects to be executed by RailTel over the next five years. These projects encompass a wide range of areas, including cutting-edge Data Center products and services, Telecom & IT products and services, Railways & Metro projects, and the revolutionary KAVACH Train Collision Prevention System.

What sets this partnership apart is its forward-looking vision. The MoU not only opens doors to funding domestic projects but also extends to the possibility of financing overseas ventures related to High-Speed Rail, metro, IT network, and the Upgradation of Railway Network. This global perspective is particularly significant as it aligns with bilateral country discussions and Infrastructure Projects in Southeast Asia and Eastern Africa, where RailTel is currently focusing.

The historic MoU was signed by Shri T.S.C Bosh, Executive Director (Infra & Logistics) of REC, and Shri Jasmeet Singh Marwah, Company Secretary of RailTel. It was graced by the presence of distinguished officials including Shri Vivek Kumar Dewangan, CMD of REC, and Shri Sanjai Kumar, CMD of RailTel. The gathering also included Shri Ajoy Choudhary, Director (Finance) of REC, Shri V K Singh, Director (Projects) of REC, Shri Manoj Tandon, Director (Project) of RailTel, Shri Anshul Gupta, Advisor of RailTel, and other senior executives from both REC and RailTel.

Following the signing of the MoU, the esteemed representatives delved into detailed discussions and explored various opportunities for collaboration. They agreed upon venturing into new domains such as Renewable Energy, Smart Metering, and other projects where RailTel and REC (through its wholly owned subsidiary RECPDCL) can combine their expertise to drive innovation and transformation.

REC Limited, with its legacy spanning over half a century, provides long-term loans and financial products for the Power-Infrastructure sector, encompassing Generation, Transmission, Distribution, Renewable Energy, and emerging technologies like Electric Vehicles, Battery Storage, and Green Hydrogen. Notably, REC has diversified into the Non-Power Infrastructure sector, including Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works in various other sectors such as Steel and Refineries. REC’s loan book currently exceeds a staggering Rs. 4,74,275 Crore, reflecting its commitment to powering India’s growth.

RailTel, on the other hand, stands as one of the largest neutral telecom infrastructure & ICT Solutions & Services providers in the country. With a vast Pan-India optic fiber network covering numerous towns, cities, and rural areas, RailTel offers a reliable network spanning over 61,000 RKM of Optic fiber. Additionally, RailTel owns two MeitY empaneled tier III data centers, further solidifying its position in the ICT sector. RailTel offers a wide array of services, including MPLS VPN, Telepresence, leased lines, Tower Co-location, Data center services, Project management, IT & ICT consultancy, and more.

The partnership between REC Limited and RailTel holds the promise of transforming the connectivity and infrastructure landscape of India and beyond. It signifies a resolute step towards a more connected, efficient, and technologically advanced future, supported by the financial strength of REC and the vast infrastructure capabilities of RailTel. As the world moves toward a digital and connected era, this collaboration is poised to play a pivotal role in shaping the future.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.