Business News/ Companies / News/  REC targets 2.4 trillion loan book in renewable energy portfolio by 2030

NEW DELHI : State-owned infrastructure finance company REC Ltd is set to significantly expand its loan book under the renewable energy (RE) portfolio, aiming for 2.4 lakh crore by the financial year 2030. REC, a key player in energy sector project financing, has been actively contributing to India’s renewable energy goals and has taken various initiatives to accelerate the implementation of RE projects in the country.

The company’s foray into the non-power infrastructure sector has been instrumental in its growth and development, with 85,735 crore in sanctions coming from the infrastructure and logistics segment. REC has also focused on growing its renewable business, securing 21,371 crore in sanctions specifically for this segment.

The Government of India has set an ambitious target of installing 500 gigawatts (GW) of renewable energy capacity by 2030. REC’s financing initiatives and support play a crucial role in achieving this target and driving the transition to clean energy sources.

In addition to conventional solar and wind projects, REC has diversified its portfolio by financing hybrid projects, e-vehicle projects, pumped storage projects, solar module manufacturing, and other emerging sectors such as green hydrogen, green ammonia, and round-the-clock (RTC) power projects. These initiatives reflect REC’s commitment to exploring new avenues and staying at the forefront of renewable energy financing.

Over the years, REC’s sanction in the RE space has witnessed remarkable growth, increasing from 7,034 crore in the fiscal year 2017-18 to 21,317 crore in 2022-23. The company’s loan book in the RE space has also seen substantial growth, rising from 7,506 crore in FY 2017-18 to 29,073 crore in 2022-23. With these positive trends and strategic measures, REC aims to expand its loan book under the Renewable Energy Portfolio to 2.4 lakh crore by the fiscal year 2030.

REC’s recent launch of the Late Payment Surcharge (LPS) scheme in June 2022 has yielded significant results in reducing outstanding dues. At the time of its introduction, state utilities owed 1.39 lakh crore, a figure that has now been reduced to 80,000 crore. This reduction of 42% in outstanding dues within a year reflects the scheme’s success in incentivizing timely payments and making the power sector an attractive investment opportunity.

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Updated: 19 May 2023, 09:28 AM IST
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