REC eyeing 50% funding opportunity from 85 GW thermal power capacity coming up by FY32

New Delhi: With India’s plans to add about 85-90 GW of thermal power capacity by 2031-32, REC Limited, a major state-run non-banking financial company in the power sector, has declared its intention to fund 50 percent of the capital requirements of the thermal power capacities coming within the said timeline. At a press interaction held on Saturday, REC’ Chairman and Managing Director Vivek Kumar Dewangan said that financing the traditional coal-based generation capacities and renewable energy capacities are priority areas for the state-run NBFC going forward.

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India’s thermal power capacity addition plan will require investment of Rs 6.67 lakh cr

PSU Watch had earlier reported that India’s thermal power capacity addition plans for 2031-32 will entail an investment of Rs 6.67 lakh crore. Ajoy Choudhury, Director (Finance) at REC, said that out of the total investment of Rs 6.67 lakh crore, funding will be restricted to about Rs 4-4.5 lakh crore. “We are targeting roughly 50 percent of this funding opportunity that will happen over a period of time by 2031-32,” he said. He added that according to the government’s plan, 85-90 GW of thermal power capacity addition has been envisaged by 2031-32. This will include coal, lignite and gas-based capacities.

Coal’s share in REC loan book to remain static until 2032: CMD

On being asked if REC envisages an increase in the share of coal in the company’s loan book as it has designated funding thermal power capacities coming up by 2031-32 as a priority area, the REC CMD said that it is expected to continue at the current level of 28-30 percent. “The share of coal in our loan book is currently at 28-30 percent. And it is going to continue at that level until 2031-32 even as we tap into the funding opportunities presented by additional thermal power capacity addition. And that is because the share of renewables in our loan book will go up. Renewable Energy currently constitutes only about 7-8 percent of our loan book. And it is expected to go up to 30 percent by 2030.”

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