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REC and CVPPL Sign ₹2,147.51 Crore Term Loan Agreement for Pakal Dul HEP.

Banking & Finance | Dated: 15 Feb 2025

On February 11, 2025, New Delhi (Delhi)-based REC Limited (formerly Rural Electrification Corporation Limited), a Maharatna Central Public Sector Enterprise (CPSE) and a leading Non-Banking Financial Company (NBFC) under the Ministry of Power (MoP), signed an agreement with Chenab Valley Power Project Limited (CVPPL) to provide a term loan of ₹2,147.51 crore for the development and construction of the Pakal Dul Hydro Electric Project (HEP) in Jammu & Kashmir (J&K).

🎯 Key Highlights:

  • - The agreement was signed by Ramesh Mukhiya, Managing Director (MD) of CVPPL, and Bhupesh Chandolia, Chief Project Manager (CPM) of REC Limited, at the Regional Office of J&K, in the presence of other officials.
  • - The Pakal Dul HEP aims to utilize renewable energy resources, enhancing J&K's energy security and supporting India's transition to clean energy.

💡 Other Important Facts:

  • (i) The project is being developed on the Marusudar River, located in the Kishtwar District of J&K.
  • (ii) The project has a capacity of 1,000 megawatts (MW), with an estimated total cost of ₹12,669.67 crore.
  • (iii) CVPPL is a joint venture established in 2011 between National Hydroelectric Power Corporation (NHPC) Limited (51%) and J&K State Power Development Corporation (JKSPDC) (49%).

📚 Test Your Knowledge:

Which company recently signed a ₹2,147.51 crore term loan agreement for the Pakal Dul Hydro Electric Project (HEP)?

Correct Answer: REC Limited

🚀 Quick Recap: