REC Records Six-Fold Jump in Renewable Energy Loan Approvals in FY24

Nearly ₹1.37 trillion of loans were approved for the renewable energy sector


Public infrastructure finance company REC Limited recorded its highest-ever loan approvals totaling ₹3.58 trillion (~$43.02 billion) in the financial year (FY) 2023-24, a year-over-year (YoY) increase of 33.66%, and disbursements reaching ₹1.61 trillion (~$19.34 billion), reflecting a 66.72% growth.

A significant portion of the total approved loans, amounting to ₹1.37 trillion (~$16.46 billion), accounted for the renewable energy sector, showcasing a substantial YoY growth of 538.79%.

The loan book also experienced substantial growth, reaching ₹5.09 trillion (~$61.17 billion), marking a YoY growth of 17.13%.

In a recent interview with Mercom India, V K Singh, Director (Projects) at REC Limited, spoke about the company’s plans to increase its renewable energy loan portfolio from 6% to 30% by FY30.

REC Limited recorded a revenue of ₹120 billion (~$1.44 billion) for the third quarter of the financial year 2023-24, a 23.56% YoY increase from ₹97.12 billion (~$1.17 billion). The company attributed the performance during the quarter to improved asset quality, increased lending rates, and effective management of financing costs. REC’s net profit surged 14% YoY to ₹32.69 billion (~$393.17 million) from ₹28.78 billion (~$346.14 million).

In December 2023, REC signed a €200 million (~$217.23 million) loan agreement with German bank KfW, committing to utilize the funds to undertake reforms in India’s distribution sector.

The company’s board of directors during December 2023 approved an equity investment of ₹142.5 million (~$1.7 million) in Hindustan Power Exchange (HPX). The investment constitutes 19% of the proposed equity share capital of ₹750 million (~$9.02 million) of HPX.

Recently, the company issued its inaugural yen-denominated green bonds of ¥61.1 billion (~$412.85 million) to finance eligible renewable energy projects under its green finance framework and the Reserve Bank of India guidelines.

REC Limited was designated as the overall implementing agency for the Grid-Connected Rooftop Solar Program, which aims to achieve 40 GW of rooftop solar capacity by March 2026.