REC expands global footprint with Green Energy Projects

Home
Industry News
REC expands global footprint with Green Energy Projects

REC expands global footprint with Green Energy Projects

Industry News
Sep 21,23

In an exclusive interview, Chairman and Managing Director Vivek Kumar Dewangan unveiled their sanctioned green hydrogen ammonia project in Oman and forthcoming ventures in Bhutan, Nepal, Bangladesh, and Sri Lanka.

REC expands global footprint with Green Energy Projects

REC Ltd, the state-run financial institution, is embarking on an ambitious international expansion, bolstering its global portfolio. In an exclusive interview, Chairman and Managing Director Vivek Kumar Dewangan unveiled their sanctioned green hydrogen ammonia project in Oman and forthcoming ventures in Bhutan, Nepal, Bangladesh, and Sri Lanka.

This strategic expansion follows REC's elevation to 'Maharatna' status in September 2022, granting it the ability to invest in projects beyond the borders of India. Dewangan perceives this as a unique opportunity for REC to finance sustainable projects within the framework of the India-Middle East-Europe Economic Corridor (IMEC) and the 'One Sun, One World, One Grid' (OSOWOG) initiative.

Dewangan mentioned that projects in neighbouring nations are currently in the pipeline and poised for imminent finalisation. He noted, "We have dispatched a team to Bhutan and are awaiting clearance from the Ministry of External Affairs (MEA) for these projects." The envisioned projects encompass hydroelectric power facilities, transmission lines connecting India to Bangladesh and Sri Lanka, as well as other renewable energy initiatives. The selection of these projects will be closely aligned with India's strategic interests and subject to guidance from the MEA.

The IMEC represents a prospective economic corridor designed to foster economic development by enhancing connectivity and integration among Asia, the Persian Gulf, and Europe across various sectors, including trade and energy.

Meanwhile, the OSOWOG initiative, initially proposed by Indian Prime Minister Narendra Modi in 2018 during the inaugural assembly of the International Solar Alliance, aims to provide power to approximately 140 countries through a shared grid dedicated to transferring solar energy.

REC's financial stature has witnessed remarkable growth, with its loan portfolio expanding from Rs 3.85 trillion at the close of March 2022 to Rs 4.35 trillion as of March 2023. In the first quarter of the current fiscal year, additional Rs 190 billion were added. Should this growth trajectory persist, Dewangan anticipates that the loan portfolio could surpass Rs 5 trillion by year-end.

In the previous year, REC recorded sanctions totalling Rs 2.68 trillion, and it is on track to approach nearly Rs 2 trillion by the end of September, with annual projections estimating total sanctions at approximately Rs 4 trillion, alongside expected disbursements of about Rs 1.5 trillion.

REC, primarily an NBFC focused on power sector financing and development across India, extends financial support throughout the entire power-sector value chain, encompassing various project types, including generation, transmission and distribution, and renewable energy.

Moreover, the company has diversified its interests into the non-power infrastructure and logistics sector, encompassing projects in areas such as airports, metro systems, railways, ports, bridges, and more.

Source: ET Energyworld