We plan to disburse Rs 75,000 crore worth of loan next fiscal: REC CMD P V Ramesh


We plan to disburse Rs 75,000 crore worth of loan next fiscal: REC CMD P V Ramesh

What are the areas of work REC is currently focussing on?
REC’s mandate has been expanded from rural electrification to cover the entire value chain of the power sector. We are also the nodal agency for some of the government programmes including DDUGJY, Power for All and UDAY. Our strategy is to build on these trends and become a premiere financing entity which is working across the value chain having close relations which the state governments, state utilities, private sector and the renewable energy sector. For an organisation that disburses close to Rs 50,000 crores a year, it has less than 600 employees and 18 offices across the country.
Where do you visualize most of the future investments from REC being directed?
Our big investments in the days ahead would be in distribution organisations where a lot of investment is required. This would catalyse what is happening in DDUGJY. One needs to strengthen the infrastructure of the distribution system and modernise it. One big investment would come when discoms become more efficient, profitable and self-reliant. They will be able to have greater fiscal space for increased borrowing capacity. The second big area is transmission. Interstate transmission is being modernised. This requires big investments because ultimately we need transmission infrastructure to take power from generation to states. The third area is renewables – both solar, wind and the associated evacuation system. The fourth area is old thermal power systems that have outlived their utility and need to be refurbished. So, that could be a good business opportunity.

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Source – The Economic Times

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