REC Ltd, in a regulatory filing, announced that the company has been granted “Maharatna” status. The company, a subsidiary of Power Finance Corporation, was already equipped with “Navratna” status.
The regulatory filing said that based on its financial and other parameters, the Department of Public Enterprises (DPE), Ministry of Finance, Government of India, vide its Office Memorandum (OM) File No. PD-I. 26/0001/2022-DPE dated September 21, 2022, has conveyed grant of ‘MAHARATNA’ status to REC Ltd.
In general terms, the “Maharatna” status will give more financial autonomy to REC, leading to more operational efficiency. For instance, REC will be allowed to invest up to 15 per cent of its net worth in a project, without prior government approval.
According to information available with T&D India, there are 12 Central PSUs with “maharatna” status, including the newly-recognized REC. Three other maharatna PSUs under the power ministry include NTPC Ltd, Power Grid Corporation of India Ltd and Power Finance Corporation.
Incorporated in 1969 and formerly known as Rural Electrification Corporation, REC is a Central PSU under the Union power ministry.
REC funds its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings, on its own.
REC is the nodal agency for Government of India’s flagship schemes — Pradhan Mantri Sahaj Bijli Har Ghar Yojana (AUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY) and National Electricity Fund (NEF).
Along with Power Finance Corporation, REC has also been designated as Nodal Agency for Revamped Distribution Sector Scheme (RDSS). Besides, REC assists Ministry of Power in monitoring of the Ujjwal Discom Assurance Yojana (UDAY) which seeks to operationally reform and financially turnaround the power distribution companies of the country.
Also read: Bihar Signs Agreement With REC For Power Distribution Revamp
REC’s subsidiary REC Power Development & Consultancy Ltd provides consultancy services in the power T&D sector. RECPDCL is also the nodal agency for power transmission schemes developed under the tariff-based competitive bidding (TBCB) route. RECPDCL’s official role is that of the bid process coordinator (BPC).
Featured photograph depicting rural electrification is for representation only