REC to provide ₹3,045 cr finance to Bangalore Metro

Tags: Economy/Finance State News

REC Limited, a Public Sector Enterprise under the Union Ministry of Power, has announced its decision to provide financial assistance of Rs 3,045 crore to Bangalore Metro Rail Corporation Limited (BMRCL) for the Phase-II project of Bangalore Metro.

An overview of the news

• The assistance was approved by the REC Board during a meeting. The Ministry of Power released a statement confirming the extension of financial support to BMRCL.

Phase-II project of Namma Metro

• The Phase-II project of Namma Metro includes the extension of the existing East-West Corridor and North-South Corridor of Phase-I, as well as the addition of two new lines: RV Road to Bommasandra and Kalena Agrahara to Nagawara.

• These new metro lines will help alleviate traffic congestion in high-traffic areas of Bangalore. 

• Upon completion of Phase-II, the Namma Metro network will cover a total distance of 114.39 km and have 101 stations.

About REC Limited

• REC Limited, as a non-banking financial company (NBFC) focused on power sector financing and development, is expanding its involvement in funding infrastructure development by providing financial assistance to BMRCL.

• REC Ltd offers financial support for various types of projects in the power sector, including generation, transmission, distribution, and renewable energy.

• In its fiscal fourth quarter results, REC reported a consolidated net profit of Rs 3,065.37 crore for the quarter ending March 2023, marking a 33% increase compared to the same quarter last year.

• The company's total revenue from operations stood at Rs 10,243.06 crore, reflecting a 6.3% growth compared to the previous year's corresponding period. 

• Total expenses for the quarter were Rs 6,353.40 crore, a decrease of 6.5% compared to the previous year.