REC Ltd Eyes Nuclear Energy Investment and Expanding Renewable Financing

In an exciting development for the energy sector, REC Ltd, a state-owned non-banking finance company, is contemplating a significant entry into the nuclear energy market within the next two to three years. The company’s Director of Finance, Ajoy Choudhury, revealed plans to provide funding for public sector entities involved in nuclear power initiatives, tapping into what he estimates to be a massive Rs 10-12 lakh crore opportunity.

Focus on Small Modular Reactors

Choudhury emphasized that the company is particularly interested in financing small modular reactors (SMRs), highlighting this technology as a key area for future investment. This move aligns with REC’s broader strategy to diversify its portfolio and engage in emerging energy sectors.

Commitment to Conventional Thermal Power

In addition to exploring nuclear opportunities, REC Ltd is also committed to financing conventional thermal power projects. The Indian government has set ambitious targets to boost the country’s thermal capacity, increasing it from 80 gigawatts (GW) to 95 GW by 2031-32 to meet surging energy demands.

• Key Goals:
  • Increase thermal capacity to 95 GW
  • Support the growing energy requirements of the nation

Accelerating Solar Initiatives

Moreover, REC is actively involved in the PM Suryaghar Muft Bijlee Yojana, aiming to install rooftop solar systems in 10 million households by 2026-27. The company has received 51 lakh applications under this initiative, with aspirations to reach 55 lakh by FY26.

Growth in Renewable Energy Financing

Transitioning towards a greener future, REC Ltd is also planning to ramp up its investments in the renewable energy sector. The company aims to increase its renewable energy lending—from the current 10% to 30% by 2030. This includes financing projects related to wind, hydro, solar, and green hydrogen.

Strong Financial Performance

In its recent financial report for FY 2024-25, REC Ltd recorded a 5.6% increase in consolidated net profit, reaching Rs 4,309.98 crore, compared to Rs 4,709.09 crore during the same quarter last year. The company is targeting to achieve net zero non-performing assets (NPA) status by the end of FY 2025-26.

• Key Financial Highlights:
  • Assets under management rose to Rs 5.66 lakh crore
  • Ambition to double assets to Rs 10 trillion by 2030
  • Proposed final dividend of Rs 2.60 per equity share for FY 2024-25

New Joint Venture for Renewable Projects

In a strategic move, REC’s Board has approved the establishment of a Joint Venture with Bharat Heavy Electricals Limited (BHEL) to pursue renewable energy and other power-related infrastructure projects. This collaboration reflects REC’s commitment to enhancing its capabilities and partnerships in the energy sector.

REC Ltd is poised for a transformative journey in the energy landscape, with its focus on nuclear energy, renewable financing, and robust financial health paving the way for a sustainable future.