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  • Mon. Dec 9th, 2024

REC Limited

ByULF TEAM

Jan 10, 2024 #Economy
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REC Ltd. recently announced its ambitious plan to increase its financial sanctioning in the infrastructure space, including roads and highways, to ₹1 lakh crore in the current financial year.

About REC Limited:

  • REC Limited (formerly Rural Electrification Corporation Limited) is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution.
  • It is registered with the RBI as a Non-Banking Finance Company (NBFC), a Public Financial Institution (PFI) and an Infrastructure Financing Company (IFC).
  • History:
    • It was incorporated in 1969, in the backdrop of severe drought and famine in the country, to energise agricultural pump-sets for irrigation purposes, thereby reducing the dependency of agriculture on monsoons.
    • REC has evolved and expanded its financing mandate to cover the entire Power-Infrastructure sector, comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc.
    • More recently REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.
  • Financing: REC provides long-term loans and other financing products to State, Centre, and Private Companies for creation of infrastructure assets in the country.
  • REC funds its business with market borrowings of various maturities, including bonds and term loans, apart from foreign borrowings
  • ECPDCL (REC Power Development and Consultancy Limited), the wholly owned subsidiary of RECprovides a range of value-added consultancy services in the power sector. 

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