New Delhi (21.09.2022): Department of Public Enterprises, Union Ministry of Finance has accorded the status of a ‘Maharatna’ Central Public Sector Enterprise to Rural Electrification Corporation (REC) today. Now, it has got greater operational and financial autonomy. Incorporated in 1969, REC is an NBFC focusing on Power Sector Financing and Development across India.
‘Maharatna’ status to REC will impart enhanced powers to the company’s Board while taking financial decisions. The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to ₹5,000 crore in one project.
The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training. With this, REC can also enter into technology Joint Ventures or other strategic alliances among others.
Vivek Kumar Dewangan, CMD, REC said that REC achieved this feat owing to its adaptability, resilience and consistent performance even during the global COVID-19 pandemic. “In FY22, REC made its highest ever net profit of ₹10,046 crore and reached a net worth of ₹50,986 crore, owing to its cost-effective resource management and strong financial policies.”