REC aims to double loan book to Rs 10 lakh cr by FY30
REC Ltd is targeting Rs 10 lakh crore of loan book by 2029-30, with 50-60% comprising conventional power generation, transmission and distribution projects, and 30% focused on the renewable energy segment, chairman Vivek Kumar Dewangan told ET.
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The current assets under management of the state-owned company are around Rs 5 lakh crore. The power ministry has projected a need for 85 GW of coal-based power capacity by FY32 and can go beyond if needed.
«Earlier we were targeting non-power infra projects because conventional generation and transmission were tapering off. Now this has picked up,» Dewangan said.
The non-banking financial company also sees opportunity in the distribution and transmission sector in the coming years. "RDSS (Revamped Distribution Sector Scheme) is picking up. There will be a modernisation of the distribution sector as well," Dewangan said.
RDSS was envisaged with investment of ₹3 lakh crore for 2021-22 to 2025-26, of which around ₹97,000 crore is the central government's grant and Rs 2 lakh crore is to come from the state government and through loan. REC sees a debt financing potential of ₹60,000-₹70,000 crore for the company in this segment in the next two-three years, Dewangan said.
Even after the RDSS scheme gets over, distribution infrastructure will need continuous investment for upgradation for the next 10-15 years, for which there may be huge capital requirements, he said.
Non-power infrastructure portfolio of the
