REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as non-banking finance company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
REC was incorporated in 1969 in the backdrop of severe drought and famine in the country, to energise agricultural pump-sets for irrigation purposes, thereby reducing the dependency of agriculture on monsoons. From its humble beginnings, REC has evolved and expanded its financing mandate to cover the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc. More recently REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.
REC provides long terms loans and other financing products to State, Centre and Private Companies for creation of infrastructure assets in the country.
As on 30.06.23, REC had a Loan Book of ₹4,54,393 Cr with 91% loans to state sector. The Net Worth of the company stood at ₹60,886 Cr. As per Public Enterprises Survey FY2021-22, REC is ranked 8th in term of Net Profit among all 188 profit making CPSEs.
REC continues to play a key strategic role in the flagship schemes of the Government for the power sector. In the past, REC has been associated as nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY) and National Electricity Fund (NEF) Scheme. These schemes resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain states for the Revamped Distribution Sector Scheme (RDSS).
REC funds its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings. REC enjoys highest Domestic Rating of “AAA” for long-term borrowing from IRRPL, CRISIL, and ICRA. On international basis, REC holds rating of “Baa3” from Moody’s and “BBB-” from Fitch, both at par with sovereign ratings.
REC has a countrywide presence through 22 state offices for effective service delivery.
RECPDCL, (REC Power Development and Consultancy Limited) the wholly owned subsidiary of REC, provides a range of value added consultancy services in the power sector.