New Delhi [India], September 22 (ANI): The Rural Electrification Corporation (REC) Ltd was accorded the status of 'Maharatna' central public sector enterprise (CPSE), thus giving it greater operational and financial autonomy.
An order to this effect was issued by the Department of Public Enterprises under the Finance Ministry on Wednesday.
Incorporated in 1969, REC is a non-banking finance company (NBFC), focussing on power sector financing and development across India.
"This grant of 'Maharatna' status to REC will impart enhanced powers to the company's board while taking financial decisions," the company said in a statement.
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. Now, REC can also enter into technology Joint Ventures or other strategic alliances among others," the Ministry of Power said.
Chairman and Managing Director of REC Vivek Kumar Dewangan 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," he said adding that 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.
"REC is currently playing the role of nodal agency for Revamped Distribution Sector Scheme (RDSS), for revamping the distribution sector to alleviate the financial and 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," Dewangan further said.
"REC Limited is an NBFC focusing on Power Sector Financing and Development across India. REC Limited has completed over fifty years in the area of its operations. It provides financial assistance to state electricity boards, state governments, central and state power utilities, independent power producers, rural electric cooperatives and private sector utilities," said the ministry.
The ministry's statement also added that 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. (ANI)