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New Delhi: Centre is considering granting the status of a development finance institution (DFI) to REC Ltd to enable the state-run company to steer global climate funding and net zero investment in the country.
A statement from the company, which comes under the union ministry of power, said that in the recent AGM of the corporation held on 16 September, the investors were apprised by the CMD Vivek Kumar Dewangan about the company’s future vision to diversify into energy transition and future technology funding.
The estimated fund requirements for transitioning towards a net zero economy would be around $3.5 trillion till FY2050 and around $10 trillion till 2070 out of which a large share of investment will be required in the power sector.
“REC as a DFI will be analyzing end-to-end capital flow requirements and bridge the gap by large-scale fund mobilization and monitoring the funds. With a strong domain expertise and appraisal capabilities, REC is strategically placed to dispense off the duties and responsibilities of a DFI," the statement said.
It added that with these developments REC is poised to contribute to the country’s journey to become an “infrastructure behemoth which will responsibly realize the dream a safe and carbon neutral tomorrow for generations to come".
“REC has been steadfast in shaping and modelling itself with the changing needs of the nation–be it providing financial support across all segments of power sector, providing energy infrastructure to all villages and electricity access to all households to now reinventing itself in line with the net zero requirements of India’s booming economy," it said.
An NBFC focusing on power sector financing and development across India, REC was established in 1969.
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.
Its business activities involve financing projects in the complete power sector value chain, for various types of projects including generation, transmission, distribution and renewable energy.