REC has been accorded the status of ‘Maharatna Central Public Sector Enterprise’ and the Finance Ministry issued an order to this effect on Wednesday. In 2021-22, REC posted 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 Government of India’s flagship schemes like DDUGJY and SAUBHAGYA and has contributed to achieving village and household electrification in the country,” said REC Chairman and Managing Director Vivek Kumar Dewangan.
He further said that the REC has achieved this feat due to its adaptability, resilience and consistent performance even during the global Covid-19 pandemic. In FY22, REC posted its highest ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, driven by its cost-effective asset management and strong fiscal policy.
“REC is currently acting as the nodal agency for the Revamped Distribution Sector Scheme (RDSS), to restructure the distribution sector to address financial and operational issues. We thank all our stakeholders who have placed their trust in the company, and especially our employees who have offered their unwavering support over more than five decades of our operations. We express our sincere gratitude to the Ministry of Power whose guidance and support have been instrumental in making this achievement 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. “Granting ‘Maharatna’ status to REC will provide enhanced powers to company boards while taking financial decisions.”
After ‘Maharatna’ status, the board of a ‘Maharatna’ CPSE can invest equity in managing 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 value of the respective CPSE. , limited to Rs 5,000 crore per project.
The Board may formulate and implement schemes relating to personnel and human resource management and training. They may enter into technology joint ventures or other strategic alliances among others.
About REC Ltd
Organized in 1969, REC is a Non-Banking Financial Corporation (NBFC) focused on financing and developing the power sector across India. It has completed more than 50 years of its activities. 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 across the entire power sector value chain; For various types of projects including generation, transmission, distribution and renewable energy. REC’s funding lights every fourth light bulb in India.
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