Maharatna Central Public Sector Enterprise REC Limited will set up a wholly owned subsidiary in International Financial Services Centre (IFSC), Gujarat International Finance Tec-City (GIFT), Gandhinagar, Gujarat.
A leading NBFC under the Ministry of Power has received a ‘No Objection Certificate’ from the Reserve Bank of India in this regard.
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The decision to expand operations into GIFT, a burgeoning hub for financial services in India, comes as REC continues to diversify its portfolio and explore new avenues for growth.
The proposed subsidiary will engage in a range of financial activities as a finance company within GIFT, including lending, investment, and other financial services.
Speaking on the development, CMD, REC Limited, Vivek Kumar Dewangan said: “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.”
“The entity at GIFT City will not only present new business opportunities for REC but will also contribute significantly to the growth of the country’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 infra sector while expanding our footprint on the global stage,” he added.
Recently, the state-owned REC Ltd declared its quarterly results for Q4FY24, saying it posted a 33 per cent rise in its consolidated net profit to Rs 4,079.09 crore on account of higher income.
It clocked a net profit of Rs 3,065.37 crore during the January-March quarter preceding FY 2022-23.
Its total income during the fourth quarter rose to Rs 12,706.66 crore from Rs 10,254.63 crore in the year-ago period with the total expenses being Rs 7,477.18 crore as against Rs 6,353.40 crore.
