NEW DELHI: State-owned REC Ltd said it will provide a term loan of Rs 1,869 crore for 624 MW Kiru Hydro Electric Project in Kishtwar, Jammu & Kashmir. The loan will be utilised for the development, construction and operation of the project on River Chenab, a statement said.

According to the statement, REC has signed an agreement with Chenab Valley Power Project Private Ltd (CVPPPL), under which REC will provide CVPPPL with financial assistance of Rs 1,869.265 crore as a term loan. The project envisages the construction of a 135-metre-high dam and an underground powerhouse with 4 units of 156 MW each.

CVPPPL is a joint venture between NHPC (51 percent) and JKSPDC (49 percent). The company was incorporated in 2011. REC finances the entire power-infrastructure sector comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pumped storage projects, green hydrogen and green ammonia projects.

REC is an NBFC (non-banking finance company) under the Ministry of Power. The loan book of REC stands at Rs 4.97 lakh crore and net worth at Rs 64,787 crore as on December 31, 2023.