REC Limited earns 'Maharatna’ status

The grant of ‘Maharatna’ status to REC will impart enhanced powers to the company’s Board while taking financial decisions.

REC Limited earns 'Maharatna’ status

New Delhi: The status gives REC greater operational and financial autonomy. An order to this effect was issued on September 21, by the Department of Public Enterprises, under the Ministry of Finance. Incorporated in 1969, REC is an NBFC focusing on Power Sector Financing and Development across India.

The grant of ‘Maharatna’ status to REC will impart enhanced powers to the company’s Board while taking financial decisions. 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% 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 relating to personnel and Human Resource Management and Training. With this, REC can also enter into technology Joint Ventures or other strategic alliances among others.

Mr. Vivek Kumar Dewangan, CMD, REC said 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.... 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”, Mr. Dewangan said.

REC’s funding illuminates every fourth bulb in India.