REC Limited , a Maharatna company and a key player in India's power sector financing, has announced a significant expansion of its market borrowing programme for the financial year 2024-25. The company's Board of Directors, in a meeting held on March 7, 2025, approved an increase in the borrowing limit from ₹1.6 trillion to ₹1.8 trillion, signaling a robust financial strategy to support its operations and growth initiatives.

Revised Borrowing Programme

The revised market borrowing programme encompasses various debt instruments, including:

• Bonds/Debentures
• Term Loans
• External Commercial Borrowings
• Commercial Papers

REC has maintained flexibility in its approach, allowing for interchangeability amongst these various instruments. The funds will be raised through both private and public placement basis, as needed throughout the financial year 2024-25.

Strategic Financial Move

This ₹200 billion increase in the borrowing limit reflects REC's proactive approach to meeting its funding requirements. As a leading financier in the power sector, this move could indicate growing demand for infrastructure financing or an anticipation of expanded lending activities.

Approval Process

The company has stated that the funds under this revised programme will be raised from time to time during FY 2024-25. Each fundraising initiative will require approval from the Competent Authority, as per the powers delegated by the Board of Directors.

Corporate Governance

In line with regulatory requirements, REC Limited promptly disclosed this development to the stock exchanges. The board meeting that approved this revision commenced at 11:00 a.m. and concluded at 1:27 p.m. on March 7, 2025, demonstrating the company's commitment to transparency and timely communication with its stakeholders.

About REC Limited

REC Limited, formerly Rural Electrification Corporation Limited, is a Maharatna Central Public Sector Enterprise under the Ministry of Power. The company plays a crucial role in financing and promoting electrification projects across India, with a focus on rural and urban areas.

This strategic expansion of REC's borrowing programme underscores the company's ambitious plans and its significant role in India's power sector development. Stakeholders and market observers will likely monitor how REC utilizes this enhanced borrowing capacity to fuel growth and support energy infrastructure projects across the nation.

REC Limited , a prominent power sector-focused non-banking financial company (NBFC), is poised for a significant financial boost as it expects to recover approximately ₹2,600 crore from the KSK Mahanadi power project. This development marks a potential turning point in REC's efforts to manage its non-performing assets and strengthen its financial position.

Recovery Expectations

The anticipated recovery of ₹2,600 crore from the KSK Mahanadi power project represents a substantial sum for REC Limited. This expected influx of funds could have several positive implications for the company:

1. Improved Asset Quality: The recovery would likely lead to a reduction in REC's non-performing assets, potentially improving its overall asset quality.

2. Enhanced Financial Stability: A successful recovery of this magnitude could bolster REC's financial stability and liquidity position.

3. Positive Market Sentiment: This news may contribute to positive market sentiment towards REC, as it demonstrates the company's ability to recover significant amounts from troubled assets.

Impact on REC's Operations

As a power sector-focused NBFC, REC plays a crucial role in financing various segments of the power sector. The expected recovery from the KSK Mahanadi project could have broader implications for REC's operations:

• Reinvestment Potential: The recovered funds could potentially be reinvested into new projects or used to strengthen REC's lending capacity in the power sector.
• Risk Management: This recovery may be seen as a testament to REC's risk management and asset recovery strategies, potentially boosting confidence among investors and stakeholders.

Looking Ahead

While this expected recovery is a positive development for REC Limited, it's important to note that the power sector in India continues to face various challenges. The company's ability to manage its loan portfolio and navigate sector-specific risks will remain crucial for its long-term performance.

As REC moves forward with this anticipated recovery, market observers will likely keep a close eye on how the company utilizes these funds and manages its asset quality in the coming quarters.