REC Gets ‘Maharatna’ Corporate Status

Founded in 1969, REC is a non-bank finance company (NBFC) focused on financing and developing the energy sector in India. It falls under the auspices of Power Ministry.

The granting of “Maharatna” status to REC will give the company’s board of directors greater powers in making financial decisions, a company statement said.

The board of a ‘Maharatna’ CPSE may make equity investments to enter into financial joint ventures and wholly owned subsidiaries and make mergers and acquisitions in India and abroad, up to a maximum of 15 percent of the assets of the concerned CPSE, limited up to Rs 5,000 crore in one project.

The board may also structure and implement personnel and human resource management and training arrangements.

This also allows REC to enter into technological joint ventures or other strategic alliances, among other things.

President and CEO of REC, vivek Kumar Dewangan said REC delivered this feat thanks to its adaptability, resilience and consistent performance even during the global Covid-19 pandemic.

“In FY22, REC made its highest-ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, thanks to its cost-effective resource management and strong financial policies,” he said.

REC (formerly known as Rural Electrification Corporation) has contributed to the electrification of villages and households in the country.

Some major Maharatna CPSEs in India include ONGC, NTPC, Indian Oil Corporation, and BHEL.

ALSO SEE :

Rupee drops 51 paise to all-time low of 80.47 against the US dollar

DoT proposes compensation, fine exemption under new telecom rules