REC receives RBI approval to establish wholly-owned subsidiary in Gujarat’s GIFT city

Government-owned financial institution REC announced on Sunday that it has secured approval from the Reserve Bank of India (RBI) to establish a wholly-owned subsidiary in Gujarat International Finance Tec-City (GIFT City).

 

The subsidiary, operating within GIFT City, will undertake various financial activities typical of a finance company, including lending, investment, and related services.

 

According to Vivek Kumar Dewangan, CMD of REC, "The GIFT City platform offers a conducive environment for international lending activities, coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market."

 

This move is expected not only to create new business opportunities for REC but also to significantly contribute to the growth of India's energy sector.

 

"We look forward to leveraging this strategic move to further propel REC’s mission of fostering growth in India’s power and infrastructure sector while expanding our footprint on the global stage," Dewangan added.

 

The decision to expand operations into GIFT City in Gandhinagar aligns with REC's ongoing efforts to diversify its portfolio and explore new avenues for growth.

 

In the January-March quarter of FY24, REC, operating under the Ministry of Power, recorded a notable increase in net profit, soaring to Rs 4,016 crore, marking a 34 per cent surge. Operating revenue also witnessed a robust growth of 25 per cent, reaching Rs 12,613 crore during the same period.