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REC Commits Rs 15,000 Crore to Strengthen Tripura's Power Infrastructure and Renewable Energy Development

State-owned REC Limited, a Maharatna public sector enterprise under the Ministry of Power, has committed Rs 15,000 crore in financial assistance to accelerate the development of Tripura's power infrastructure and renewable energy sector. The investment, announced during the Destination Tripura Business Conclave 2026, is aimed at expanding clean energy capacity, modernising the state's electricity network, and improving long-term energy security.

As part of the initiative, REC signed two Memorandums of Understanding (MoUs) with the Government of Tripura. The first agreement, signed with the Tripura Renewable Energy Development Agency (TREDA), provides financial support of up to Rs 5,000 crore for renewable energy projects across the state. The second MoU, signed with the Tripura State Electricity Corporation Limited (TSECL), earmarks Rs 10,000 crore to finance power sector infrastructure projects, including transmission, distribution, and grid modernisation initiatives.

Under the partnership, TREDA, the state's nodal agency for renewable energy development, will facilitate the implementation of solar, biomass, and other clean energy projects, while REC will provide the required financial assistance to enable investments. The collaboration is expected to accelerate the adoption of renewable energy technologies, unlock Tripura's untapped clean energy potential, and support the state's transition toward a more sustainable and low-carbon energy ecosystem.

The Rs 10,000 crore financing arrangement with TSECL is intended to strengthen Tripura's electricity infrastructure by supporting the expansion and modernisation of the power network. Investments are expected to improve grid reliability, enhance electricity access, reduce technical losses, and ensure a stable power supply for households, industries, and commercial consumers across the state.

The announcement aligns with India's broader energy transition strategy, which focuses on increasing renewable energy deployment, strengthening state electricity infrastructure, and improving the efficiency of power distribution networks. Financial institutions such as REC play a crucial role in funding large-scale power generation, transmission, distribution, and renewable energy projects that support the country's growing electricity demand and clean energy targets.

REC has been actively expanding its presence across the power sector through strategic partnerships with state governments and utilities. In May 2026, its wholly owned subsidiary, REC Power Development and Consultancy Limited (RECPDCL), signed an agreement with the Bihar State Power Transmission Company Limited (BSPTCL) to develop intra-state transmission projects through the Tariff-Based Competitive Bidding (TBCB) route. The initiative is aimed at modernising Bihar's transmission network, reducing transmission losses, improving power quality, and encouraging greater private sector participation in grid infrastructure projects.

During the same period, REC also entered into a Memorandum of Understanding with the Electrical Research and Development Association (ERDA) to strengthen quality assurance and testing mechanisms for materials used under the Revamped Distribution Sector Scheme (RDSS). The collaboration seeks to ensure that equipment deployed in distribution networks complies with national quality standards, improving the operational reliability, efficiency, and longevity of India's power infrastructure.

With the latest Rs 15,000 crore commitment, REC reinforces its role as one of India's leading infrastructure financing institutions, supporting both conventional power and renewable energy projects. The investment is expected to boost Tripura's economic development, attract further private and public investments, create employment opportunities, and contribute to India's long-term goals of building a modern, resilient, and sustainable power sector.