Power Finance Corporation Ltd (PFC) and Rural Electrification Corporation(REC Ltd), have signed Memorandum of Understanding (MoU) with clean energy companies for providing a total of Rs 5 lakh crore funds to their projects during the “Green Finance Summit” held in Goa.
- PFC signed pacts worth Rs 2.37 lakh crore with 20 companies in the clean energy space
- REC tied up for Rs 2.75 lakh crore
The MoU were signed for solar, wind, green hydrogen, battery storage, and electric vehicle companies, manufacturers of green energy equipment.
Note: REC & PFC, a State-owned Non-Banking Financing Companies (NBFC) and a Maharatna central public sector undertaking(CPSE) comes under the Ministry of Power.
The “Green Finance” Summit:
The summit is organised by REC Ltd in partnership with the Indian Government’s Group of Twenty (G20) Presidency, on the sidelines of the 14th Clean Energy Ministerial and 8th Mission Innovation meeting (CEM14/MI-8) in Goa between 19th to 22nd of July, 2023.
Notable MoUs signed:
PMI Electro Mobility:
PMI Electro Mobility, an Electric commercial vehicles (CV) manufacturer has signed an MoU with REC Ltd to provide finance for its commercial electric vehicle (EV) for Rs 480 crore over the next five years, up to March 2028.
- The financial support helps to accelerate the efforts in combating carbon dioxide (CO2),emissions and establishing a robust ecosystem for e-mobility.
- PMI Electro Mobility Solutions Private (PEMSPL) Ltd was incorporated in 2017 and its headquarters in New Delhi, Delhi.
ACME Group:
ACME Group signed an MoU for Rs 4,000 crore loan with REC for its Green Hydrogen and Green Ammonia project in Oman.
- It also signed a pact for over Rs 21,000 crore of loans for setting up a 380-MW renewable power phase 1 of Odisha, phase 1 of Tamil Nadu Green Ammonia projects and 600 megawatt hour (MWh) of pumped hydro Project.
ACME Cleantech Solutions Pvt. Ltd., referred to as the ACME Group,a leading global sustainable and renewable energy companies headquartered at Gurugram, Haryana.
Avaada:
Avaada has signed the MoU with an investment amount of Rs 20,000 crore to fund its projects over five years.
- The financing field includes green hydrogen and its derivatives, solar photovoltaic (PV) manufacturing, and an assortment of solar, wind, and hybrid projects.
- Avaada is India’s leading energy transition company with business interests in Solar Module Manufacturing, Electrolyser manufacturing and Green Ammonia production. The company established in 2017 is headquartered in Mumbai, Maharashtra.
ReNew:
ReNew has signed MoU worth Rs 64,000 crore with PFC and REC for meeting its financing needs and enable the company to raise long-term financing for large-scale green energy projects.
- ReNew,(subsidiary of ReNew Energy Global Plc) established in 2011, is one of India’s leading renewable energy company in terms of total energy generation capacity is headquartered at Gurugram, Haryana.
SJVN:
SJVN Limited has MoU with REC Limited to secure financial support of Rs 50,000 Crores for its projects, subsidiaries and joint ventures to set up technology projects like Battery Storage, E-Vehicles, Green Hydrogen/Ammonia, Hydrogen Cells Storage, Manufacturing Units for Green Projects and power generating stations on conventional and renewable sources of energy.
- SJVN Ltd (formerly known as Satluj Jal Vidyut Nigam,) is a hydroelectric power generation company incorporated in 1988 as a joint venture of the GoI and the government of Himachal Pradesh (GoHP). It is headquartered in Shimla, Himachal Pradesh.
Juniper Green Energy
Juniper Green Energy has signed an MoU with PFC for Rs 5,000 crore to fund its 1200 MW renewable energy (RE) projects.
- Juniper Green Energy is an independent renewable energy power producer and operator of solar, wind and hybrid power projects with experience in conceptualizing, building, and developing renewable energy assets started its operations in October 2018. It is headquartered in Gurugram, Haryana.
Hero Future Energies (HFE):
HFE signed two MoU with REC and PFC for infusion of Rs 3,100 crore each in HFE over the next five years to develop green energy projects.
- The funds will be used in the development of renewable projects across India including solar and wind for commercial and industrial (C&I) customers, utility projects and green hydrogen derivatives, and will strengthen the company by ensuring the financial closure for future projects in the pipeline.
- HFE is a prominent Independent Power Producer (IPP) with utility scale wind, solar, hybrid and distributed solar plants across India was established in 2012, in New Delhi, Delhi.
Note: Adani, Greenko, Continuum, JBM Auto, Megha Engineering & Infrastructure Ltd, Rajasthan Renewable Energy were some of the other companies with whom PFC signed MoU.
About Power Finance Corporation Ltd (PFC):
Chairman & Managing Director(MD)- Parminder Chopra
Headquarters- New Delhi, Delhi
Established- 1986
About Rural Electrification Corporation(REC Ltd):
Chairman & MD– Vivek Kumar Dewangan
Headquarters- New Delhi, Delhi
Established- 1969
