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At Rs 3.55 trillion, REC clocks highest ever loan sanctions in FY24

The NBFC, which has widened its scope beyond pure play power sector, now lends to green energy, infrastructure, and new age energy transition projects as well

REC Limited (Photo: PIB)

REC Limited (Photo: PIB)

Shreya Jai New Delhi

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Leading power sector non-banking financial company (NBFC) REC Limited said it has clocked the highest ever loan sanctions in its history at Rs 3.55 trillion during the last financial year 2023-24. It said the loan disbursement was also a record high at Rs 1.61 trillion during the same period.

The NBFC, which has widened its scope beyond pure play power sector, now lends to green energy, infrastructure, and new age energy transition projects as well. Last year, REC signed Memoranda of Understanding (MoUs) worth Rs 2.85 trillion during the G20 Energy Transition Ministerial with close to 25 renewable energy companies to lend for clean energy projects.
 

This has reflected in its sanctions to the green energy sector, which has seen a jump of five times over the last financial year. Loan sanction to renewable energy projects stood at Rs 1.36 trillion during FY24 as against Rs 21,000 crore in FY23.

V K Dewangan, Chairman and Managing Director of REC Ltd, in a recent interaction with this paper, had said that while the company will continue to focus on existing schemes, it is looking at a larger shift in its portfolio towards green energy projects, infrastructure segments, and tapping into global climate funds. He also said REC is exploring several ways to reduce the cost of funding for renewable energy projects.

REC has been the nodal agency for various nationwide schemes of the Ministry of Power, most notably being the rural electrification under the DDUGJY and the SAUBHAGYA scheme. REC is currently one of the nodal agencies of another flagship scheme of the Centre - Revamped Distribution Sector Scheme (RDSS), which is aimed at improving the financial and operational health of the state-owned power distribution companies (discoms). It was also recently entrusted with the newly launched PM Suryaghar Yojana, aimed at boosting rooftop solar solutions across the domestic segment.

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First Published: Apr 08 2024 | 9:14 PM IST

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