Govt sets Rs 35,000-crore revenue target for REC in FY 2021

New Delhi: In a statement, REC Limited said that the government has set an ambitious revenue target of Rs 35,000 crore for the company for the current financial year (FY2021), which is 17.5 percent higher from the previous year's achievement. The operating profit margin target has been set at 28 percent as against 23.23 percent achieved in the previous year and target for parameter 'PAT as a % of Avg. Net worth' has been set at 17 percent as against 14.05 percent achieved in the previous year. Several other performance-related parameters and non-financial parameters, including parameters relating to the government's ambitious programme of DDUGJY have also been agreed to. The MoU was signed by REC Limited's Chairman & Managing Director (CMD) Sanjeev Kumar Gupta and PFC Limited's CMD Ravinder Singh Dhillon.

Further, REC said that it is confident to meet these targets in the excellent category despite the ongoing COVID-19 pandemic. A major boost is expected from the "Aatmanirbhar Bharat" scheme for state utilities, whereby the company is expected to provide Rs 45,000 cr of loan assistance within this year and also the thrust to financing large renewable energy projects where sanctions during the first quarter itself have surpassed the assistance provided in the previous year. 

Also read: LoUs from IREDA, PFC, REC for RE developers will be at par with bank guarantees: RK Singh

REC said that during the first quarter of FY 2021, it has achieved an all-time high profit of Rs 1,839 crore for any quarter. The revenue from operations achieved for the quarter was Rs 8,421 crore, which is indicative of the successful achievement of the set targets by year-end. The MoU has been a standard performance measure for all CPSEs and REC has been delivering exemplary performances for the last several years.

REC Limited

REC Limited (formerly Rural Electrification Corporation Limited) is a Navratna NBFC focusing on power sector financing and developments across India. Established in 1969, REC Limited has completed over 50 years in the area of its operations. It provides financial assistance across the power sector value chain. Apart from this, REC is also the nodal agency for the government's flagship schemes in the power sector like Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Saubhagya, etc.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)