2023-09-16 12:35:25
State-run REC on Saturday said that it has sanctioned a cumulative Rs 9,156 crore to Greenko and Serentica Renewables for solar-wind hybrid and pumped hydro projects.
The non-banking finance company has sanctioned Rs 6,075 crore to Greenko for the erection of a 1440 megawatt (MW) standalone pumped storage project (PSP).
The Maharatna company is also in advanced discussions with Greenko and is poised to extend financial support for multiple clean energy projects.
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Read: Green path. Financing India’s energy transition
Separately, the power sector lender also sanctioned over ₹3,081 crore debt funding to Serentica Renewables’ 560 MW peak greenfield solar-wind hybrid project at Gadag, Karnataka. The documentation has already been inked, and the disbursement of funds is also in the advanced stages.
“We are proud to be at the forefront of India’s journey towards a sustainable energy future. Our partnerships and collaborations are a testament to our commitment to align with global visions for a cleaner and greener planet. REC envisions itself as the leading financing partner for India’s energy transition, contributing significantly to the global mission of one world, one family, one future as outlined by the G20,” REC CMD Vivek Kumar Dewangan said.
Green energy financing
The Central Electricity Authority’s (CEA) National Electricity Plan estimates an overall renewable installed capacity growth of around 4 times by FY32 (around 7 times under Solar, regarding 5.5 times under PSP and around 3 times under Wind) from FY22 levels.
These projections, coupled with global thrust and national commitments under renewables, will present a business opportunity for REC and allow the company to contribute to nation-building by leading the green financing vertical.
REC hosted the Green Finance Summit in July 2023 on the sidelines of G20, where one-on-one discussions with RE developers were conducted, leading to the successful signing of Memorandums of Understanding (MoUs) amounting to around ₹2.86 lakh crore.
These milestone agreements reflect REC’s pivotal role in facilitating green financing solutions and cementing its position as a key financing partner for India’s transition to sustainable and clean energy.
Targets
With a steadfast vision and unyielding dedication, REC is firmly set on a path to attain a green finance loan portfolio totalling ₹3 lakh crore by the fiscal year 2030.
Besides, as per its MoU with its majority shareholder, Power Finance Corporation (PFC), REC targets revenue from operations of ₹46,935 crore in FY24 and ₹56,322 crore in FY25.
The NBFC signed a MoU with PFC as per the Department of Public Enterprise (DPE) Performance Evaluation System for FY24 and FY25 for CPSEs.
During REC’s annual general meeting earlier this month, Dewangan said that the Power Ministry has allowed the company to lend to the non-power infrastructure and logistics sector.
“I ecstatically report that during the first year itself, we have sanctioned more than ₹85,700 crore towards various projects spanning from Metro, Ports, Airports, Oil Refineries, Highways, Steel Infra to Healthcare, Educational Institutions and also in sectors of IT Infra/ Fiber Optics, etc. that constitute regarding 32 per cent of overall sanctions of the company, in the last financial year,” he added.
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