On January 4, 2024, REC Limited, a Maharatna CPSE (Central Public Sector Enterprise) operating under the Ministry of Power, entered into a Memorandum of Understanding (MoU) with Rail Vikas Nigam Limited (RVNL) to extend financial support of USD 4.20 billion for infrastructure projects over the next five years. The collaborative projects encompass multi-modal logistics hubs, rail infrastructure initiatives, as well as endeavors in road, port, and metro development, reflecting RVNL's diversified operations.

Established in 1969, REC Limited specializes in providing long-term loans and financial products for the Power-Infrastructure sector, spanning domains such as Generation, Transmission, Distribution, Renewable Energy, and emerging technologies like Electric Vehicles, Battery Storage, and Green Hydrogen. REC's core objective is to finance rural electrification projects and contribute to the overall development of the power sector by offering financial assistance to entities like state electricity boards, state governments, rural electric cooperatives, and private power developers.

In recent times, REC has expanded its portfolio to include Non-Power Infrastructure sectors such as Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institutions, Hospitals), Ports, and Electro-Mechanical (E&M) works in sectors like Steel and Refinery.

On the other hand, RVNL, a "Schedule ‘A’ Navratna” Central Public Sector Enterprise under the Ministry of Railways, plays a crucial role in meeting approximately 30% of Indian Railways' infrastructure needs. RVNL has been pivotal in executing large-scale infrastructure projects, often employing the Public-Private Partnership (PPP) model. While its primary focus is on railway projects, RVNL has also ventured into road, port, irrigation, and metro projects, many of which exhibit linkages with railway infrastructure in various capacities.

RVNL's primary objective is to execute rail infrastructure projects, covering aspects like new rail lines, gauge conversion, track doubling, electrification, and modernization of railway stations. The organization is dedicated to planning, executing, and managing diverse railway development projects across the country, with the overarching goal of enhancing the capacity and efficiency of the railway network. RVNL's involvement in critical railway projects contributes significantly to the overall development and modernization of the railway network in India, crucial for improving transportation connectivity and logistics.