REC Ltd, a state-owned financier, has announced plans to significantly increase its investments in India’s renewable energy sector. The company aims to commit ₹2.5 lakh crore by 2030, aligning with the country’s goal of achieving 500 GW of non-fossil fuel-based energy capacity by the end of the decade. Currently, REC has approximately ₹53,000 crore invested in renewable energy, which is a small portion of its total loan book of ₹5.67 lakh crore. However, the company plans to grow its overall loan book to ₹10 lakh crore, with ₹3 lakh crore earmarked for the renewable sector.
India’s current renewable capacity stands at 220 GW, including 106 GW solar, 50 GW wind, and 48 GW from large hydro projects. To meet its 2030 goal, the country needs to add around 50 GW of renewable energy capacity annually, requiring massive financial support. REC aims to provide this support, with a focus on green energy over the next six years. The company has also been appointed as the nodal agency for the government’s PM Surya Ghar Yojana, which targets rooftop solar adoption across 1 crore households.
REC’s Chairman and Managing Director, Jitendra Srivastava, emphasized the company’s aggressive push into green energy, stating that the renewable sector would be a key focus area over the next six years. The company has also made progress in reducing non-performing assets, with bad loans dropping from 0.86% to 0.38%. The target is to have zero bad loans for this fiscal year. With its significant investment plans, REC is poised to play a crucial role in supporting India’s transition to renewable energy and achieving its ambitious goals. The company’s focus on green energy and reduction of non-performing assets are expected to have a positive impact on the country’s energy sector and the environment.