About REC Ltd
REC Ltd. (formerly Rural Electrification Corporation Limited) is a Navratna Public Sector Enterprise. It provides crucial financial help to power sector entities for generation, transmission, distribution, and renewable energy projects. The company operates in the Power Finance sector and is one of India's largest government-owned Non-Banking Financial Companies (NBFCs).
Established in 1969, REC has been in business for many decades. The company is headquartered in New Delhi, India. REC was initially set up to finance rural electrification projects. Later, the company expanded its scope to cover the entire power sector.
The company's main products include term loans for power projects, short-term loans, and debt refinancing. It also offers equipment financing and renewable energy project funding. REC is among the top players in the power finance sector. However, it is the second-largest power sector financier after Power Finance Corporation (PFC) in terms of market capitalization.
The promoter shareholding of the company stands at 52.63%. Power Finance Corporation Limited holds this entire stake in the company. The registered office of the company is located at Core-4, SCOPE Complex, 7 Lodhi Road, New Delhi - 110003. Its registrar & share transfer agent is KFin Technologies Limited.
The key managerial promoters of the company include:
The company plays a crucial role in India's power sector development. Also, it has been instrumental in achieving various government initiatives. These initiatives include rural electrification and power sector reforms.
Rural Electrification Impact
REC's most significant influence has been in rural electrification. Since its inception, the company has been instrumental in bringing electricity to thousands of villages across India. REC has helped transform rural India by enabling access to electricity. This has brought economic change, improved education facilities, and enhanced the quality of life in rural areas. Thanks to its targeted financing and implementation support it has been particularly impactful in achieving the government's goal of 100% village electrification.
Power Sector Development
The company's influence in power sector development has been comprehensive. REC provides financing for generation, transmission, and distribution projects. Thus, it has helped build crucial power infrastructure across the country. Their funding has enabled the establishment of thermal, hydro, and renewable energy projects, contributing significantly to India's installed power capacity. The company's support for transmission and distribution infrastructure has helped reduce power losses and improve electricity access.
Renewable Energy Transition
REC has played a crucial role in India's transition towards renewable energy. The company has helped accelerate the adoption of clean energy technologies. It achieved this by providing specialized financing products for renewable energy projects. Their support for solar, wind, and other renewable projects has also contributed to India's commitment to reducing carbon emissions and achieving its renewable energy targets.
Financial Market Influence
As one of the largest NBFCs in the power sector, REC's influence also extends to financial markets. The company's bond issues, and financial instruments are highly rated and widely subscribed. This is how its financial performance positively contributes to the development of India's debt market.
Policy Implementation
REC has been a key implementing agency for various government schemes and initiatives in the power sector. Their influence in policy implementation has helped translate government vision into reality. This has made them a crucial link between policy formulation and ground-level implementation.
Technological Advancement
The company's influence extends to technological advancement in the power sector. REC has encouraged the adoption of modern technologies and best practices in power projects. This is done through their financing criteria and project evaluation standards. These advanced technologies have helped improve the efficiency and reliability of India's power infrastructure.
Economic Growth Catalyst
REC's financing activities have had a multiplier effect on economic growth. By enabling power infrastructure development, they have indirectly contributed to industrial growth, job creation, and economic development across sectors. The company focuses on timely project completion and efficient fund utilization. This has further helped maximize the economic impact of power sector investments.
Social Impact
Beyond economic considerations, REC's influence has created a significant social impact. The company has contributed to skill enhancement, community development, and environmental protection. This growth is made possible through its CSR initiatives and focus on sustainable development. Their role in rural electrification has particularly helped in reducing rural-urban disparities.
REC Ltd.'s influence on India's power sector and overall development has been profound and multifaceted. From their initial focus on rural electrification to their current role as a comprehensive power sector financier, they have consistently contributed to national development goals. As India continues its journey towards universal and sustainable power supply, REC's role remains crucial.
Established in 1969, REC has been in business for many decades. The company is headquartered in New Delhi, India. REC was initially set up to finance rural electrification projects. Later, the company expanded its scope to cover the entire power sector.
The company's main products include term loans for power projects, short-term loans, and debt refinancing. It also offers equipment financing and renewable energy project funding. REC is among the top players in the power finance sector. However, it is the second-largest power sector financier after Power Finance Corporation (PFC) in terms of market capitalization.
The promoter shareholding of the company stands at 52.63%. Power Finance Corporation Limited holds this entire stake in the company. The registered office of the company is located at Core-4, SCOPE Complex, 7 Lodhi Road, New Delhi - 110003. Its registrar & share transfer agent is KFin Technologies Limited.
The key managerial promoters of the company include:
-
Vivek Kumar Dewangan
-
V K Singh
-
Harsh Baweja
-
Manoj Manohar Pande
-
Gambheer Singh
The company plays a crucial role in India's power sector development. Also, it has been instrumental in achieving various government initiatives. These initiatives include rural electrification and power sector reforms.
Influence of the Company
REC Ltd. has emerged as a pivotal institution in India's power sector development over many decades. As a Navratna PSU and one of the largest NBFCs in the power sector, its influence extends beyond financial assistance. The company plays a crucial role in shaping India's power infrastructure, rural development, and energy security. REC's impact can be seen across various dimensions of the power sector and the broader economy.Rural Electrification Impact
REC's most significant influence has been in rural electrification. Since its inception, the company has been instrumental in bringing electricity to thousands of villages across India. REC has helped transform rural India by enabling access to electricity. This has brought economic change, improved education facilities, and enhanced the quality of life in rural areas. Thanks to its targeted financing and implementation support it has been particularly impactful in achieving the government's goal of 100% village electrification.
Power Sector Development
The company's influence in power sector development has been comprehensive. REC provides financing for generation, transmission, and distribution projects. Thus, it has helped build crucial power infrastructure across the country. Their funding has enabled the establishment of thermal, hydro, and renewable energy projects, contributing significantly to India's installed power capacity. The company's support for transmission and distribution infrastructure has helped reduce power losses and improve electricity access.
Renewable Energy Transition
REC has played a crucial role in India's transition towards renewable energy. The company has helped accelerate the adoption of clean energy technologies. It achieved this by providing specialized financing products for renewable energy projects. Their support for solar, wind, and other renewable projects has also contributed to India's commitment to reducing carbon emissions and achieving its renewable energy targets.
Financial Market Influence
As one of the largest NBFCs in the power sector, REC's influence also extends to financial markets. The company's bond issues, and financial instruments are highly rated and widely subscribed. This is how its financial performance positively contributes to the development of India's debt market.
Policy Implementation
REC has been a key implementing agency for various government schemes and initiatives in the power sector. Their influence in policy implementation has helped translate government vision into reality. This has made them a crucial link between policy formulation and ground-level implementation.
Technological Advancement
The company's influence extends to technological advancement in the power sector. REC has encouraged the adoption of modern technologies and best practices in power projects. This is done through their financing criteria and project evaluation standards. These advanced technologies have helped improve the efficiency and reliability of India's power infrastructure.
Economic Growth Catalyst
REC's financing activities have had a multiplier effect on economic growth. By enabling power infrastructure development, they have indirectly contributed to industrial growth, job creation, and economic development across sectors. The company focuses on timely project completion and efficient fund utilization. This has further helped maximize the economic impact of power sector investments.
Social Impact
Beyond economic considerations, REC's influence has created a significant social impact. The company has contributed to skill enhancement, community development, and environmental protection. This growth is made possible through its CSR initiatives and focus on sustainable development. Their role in rural electrification has particularly helped in reducing rural-urban disparities.
REC Ltd.'s influence on India's power sector and overall development has been profound and multifaceted. From their initial focus on rural electrification to their current role as a comprehensive power sector financier, they have consistently contributed to national development goals. As India continues its journey towards universal and sustainable power supply, REC's role remains crucial.
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