Rural Electrification Corporation Limited, a Non-Banking Financial Company (NBFC) in the power sector, has approved a significant debt funding of over Rs. 3,081 Crore for Serentica Renewables, a renewable energy company. This funding will support Serentica’s 560 MW peak greenfield solar-wind hybrid project located in Gadag district, Karnataka. According to the Ministry of Power, the loan agreements have been formally executed, and the disbursement process is currently underway.
REC’s move comes as India is on its path towards an energy transition and aligns with the nation’s goals set in COP26 and recent pledges made under India’s G20 Presidency. According to MoP, REC will achieve a green finance loan book of Rs. 3 lakh Crore by the fiscal year 2030.
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Chairman Vivek Kumar Dewangan, expressed pride in being at the forefront of India’s journey towards a sustainable energy future. He stated, “Our partnerships and collaborations are a testamen to our commitment to align with global visions for a cleaner and greener planet. REC envisions itself as the leading financing partner for India’s energy transition, contributing significantly to the global mission of ‘one world, one family, one future’ as outlined by the G20.”
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Established in 1969, REC has over fifty-four years of experience in providing financial assistance across the power sector value chain, encompassing Generation, Transmission & Distribution, and Renewable Energy projects. In recent developments, REC has diversified into non-power Infrastructure and Logistics sectors, encompassing critical areas like airports, metro, railways, ports, and bridges.
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On September 6, REC Limited convened its 54th Annual General Meeting (AGM). The meeting, chared by Dewangan, saw the participation of all Directors on the Company’s Board. Numerous shareholders also attended the meeting virtually.
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Dewangan, in the conference, had said, “REC is committed to increasing its present loan portfolio of Green Projects to the extent of more than ten times by the year 2030 amounting to ₹ 3 lakh crore. REC has been known for its rural electrification efforts; now it would be known for its Renewable Energy (RE) focused initiatives including solar, wind, hybrid, and e-mobility projects, as well as new areas like Green Hydrogen, Green Ammonia Projects, round-the-clock projects involving bundling of RE with thermal power and ethanol manufacturing.”
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Furthermore, the Ministry of Power has entrusted REC with the authority to lend to non-power infrastructure & logistics sectors, facilitating the accelerted development of the nation. Dewangan reported that in the first year alone, REC has sanctioned over ₹85,700 crore towards various projects, spanning critical sectors from Metro to Healthcare, constituting approximately 32 percent of the Company’s overall sanctions in the last financial year.
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In terms of financial matters, Dewangan revealed that REC issued bonus shares in a 1:3 ratio in August 2022, substantially increasing the share capital. REC also stood out as one of the highest dividend-paying companies in its category. For FY23, the Board proposed a final dividend of ₹4.35 per share, in addition to the Interim Dividends already disbursed, bringing the total dividend payout for FY23 to ₹3,318 Crore.
First Published: 17th September, 2023 08:29 IST