With ₹90,955 crore in total loans disbursed and a remarkable 92.68% YoY growth in green loans, REC is playing a key role in financing India’s energy transition.
GURUGRAM (India CSR): REC Limited, a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power, has reported a robust financial performance for the first half of the fiscal year 2024-25, with total loan disbursements reaching Rs. 90,955 crore. This marks a significant year-on-year (YoY) increase of 20.10%, showcasing the company’s continued growth and strong presence in India’s power and renewable energy sectors.
REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
Growth in Green Loans
A key highlight of REC Limited’s financials for the half-year ending September 30, 2024, is the sharp increase in loans directed towards renewable energy projects. The company disbursed Rs. 11,297 crore in green loans, representing a remarkable 92.68% YoY growth. This surge reflects REC’s strategic focus on supporting India’s renewable energy goals and aligning with the nation’s transition to cleaner and more sustainable energy sources.
Q2 FY25 Performance
During the second quarter of FY25 alone, REC disbursed Rs. 47,303 crore in loans, marking a 13.71% increase compared to Rs. 41,598 crore in the same quarter of the previous fiscal year.
Of this total, Rs. 5,946 crore was allocated specifically to renewable energy projects, a YoY increase of 37.35%. This uptick underscores REC’s commitment to expanding its green portfolio, which is in line with India’s ambitious renewable energy targets.
Strategic Focus and Future Outlook
REC Limited’s performance reflects its dedication to financing a broad range of infrastructure projects within the power sector, with a renewed emphasis on renewable energy. The company’s significant increase in green loan disbursements comes as India continues to invest heavily in clean energy initiatives, aiming to reduce its carbon footprint and meet its international climate commitments.
The surge in REC’s renewable energy loans is part of a broader trend within the power finance sector, where non-banking financial companies (NBFCs) are increasingly channeling funds toward sustainable energy projects. By accelerating its green financing, REC Limited is playing a pivotal role in bolstering India’s renewable energy capacity, and supporting projects in solar, wind, and other clean energy sectors.
Commitment to Sustainable Growth
REC’s emphasis on renewable energy loans reflects its strategic shift toward a more sustainable business model. The company’s proactive stance in promoting green energy is in line with the government’s renewable energy goals and the global shift towards sustainable development.
REC’s statement highlighted the company’s commitment to supporting India’s energy transition. “Our substantial increase in green loan disbursements demonstrates REC’s commitment to aligning our financing strategy with India’s renewable energy ambitions. We are focused on providing the necessary financial backing to projects that contribute to a greener, more sustainable future for the country.”
Financial Performance and Sectoral Impact
REC Limited’s overall financial health has shown resilience in the face of evolving market dynamics, particularly with the growing focus on renewable energy. The company’s ability to maintain a strong loan disbursement pipeline, particularly in the renewable sector, is expected to strengthen its market position as a leading NBFC in the power financing sector.
REC’s significant contribution to renewable energy financing is expected to have far-reaching implications for India’s energy landscape. With the government pushing for rapid growth in the renewable energy sector, REC’s financing efforts are crucial in supporting the development of solar, wind, and other sustainable energy projects, ultimately aiding in the reduction of the country’s dependency on fossil fuels.
Key Facts
| Total Loan Disbursements (H1 FY25) | ₹90,955 crore |
| Year-on-Year Growth in Total Loans | 20.10% |
| Green Loan Disbursements (H1 FY25) | ₹11,297 crore |
| Year-on-Year Growth in Green Loans | 92.68% |
| Loan Disbursements (Q2 FY25) | ₹47,303 crore |
| Year-on-Year Growth in Q2 Loans | 13.71% |
| Green Loan Disbursements (Q2 FY25) | ₹5,946 crore |
| Year-on-Year Growth in Q2 Green Loans | 37.35% |
(India CSR)
