New Delhi: State-run REC Ltd was on Wednesday accorded the status of a 'Maharatna' Central Public Sector Enterprise. This will give REC greater operational and financial autonomy, a company statement said. An order to this effect was issued on Wednesday by the Department of Public Enterprises, under the Ministry of Finance, it added.
Incorporated in 1969, REC is a non-banking finance company (NBFC) focusing on power sector financing and development across India.
The grant of 'Maharatna' status to REC will impart enhanced powers to the company's board while taking financial decisions.
The board of a Maharatna CPSE can make equity investments for financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.
The board can also structure and implement schemes relating to personnel and human resource management and training. With this, REC can also enter into technology joint ventures or other strategic alliances.
REC CMD Vivek Kumar Dewangan said the company achieved this feat owing to its adaptability, resilience and consistent performance even during the COVID-19 pandemic.
"In FY22, REC made its highest ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, owing to its cost-effective resource management and strong financial policies.
"REC has played a key role in the success of the flagship schemes of the Government of India such as DDUGJY and SAUBHAGYA and has contributed towards achieving village and household electrification in the country. REC is currently playing the role of nodal agency for Revamped Distribution Sector Scheme (RDSS), for revamping the distribution sector to alleviate the financial & operational issues," he added.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)