REC has been accorded the status of ‘Maharatna Central Public Sector Enterprise’ and an order to this effect was issued on Wednesday by the Ministry of Finance. In 2021-22, REC made its highest-ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore.
“REC has played a key role in the success of the flagship schemes of the Government of India such as DDUGJY and SAUBHAGYA and has contributed towards achieving village and household electrification in the country,” said Vivek Kumar Dewangan, chairman and managing director of REC.
He added that REC achieved this feat owing to its adaptability, resilience and consistent performance even during the global COVID-19 pandemic. In FY22, REC made its highest-ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, owing to its cost-effective resource management and strong financial policies.
“REC is currently playing the role of nodal agency for Revamped Distribution Sector Scheme (RDSS), for revamping the distribution sector to alleviate the financial & operational issues. We thank all of our stakeholders who have placed their trust in the company, and especially our employees who have offered their unwavering support for over five decades of our operations. We express our heartfelt gratitude to the Ministry of Power whose guidance and support have been key in making this accomplishment possible,” Dewangan said.
What Does ‘Maharatna’ Status Mean For REC?
The ‘Maharatna’ status will give REC greater operational and financial autonomy, the company said in a statement. “The grant of ‘Maharatna’ status to REC will impart enhanced powers to the company’s board while taking financial decisions.”
After the ‘Maharatna’ status, the board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.
The board can also structure and implement schemes related to personnel and human resource management and training. They can also enter into technology joint ventures or other strategic alliances among others.
About REC Ltd
Incorporated in 1969, REC is a non-banking financial company (NBFC) focusing on power sector financing and development across India. It has completed over 50 years in the area of its operations. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
The company’s business activities involve financing projects in the complete power sector value chain; for various types of projects including generation, transmission, distribution and renewable energy. REC’s funding illuminates every fourth bulb in India.