REC: For the financial year 2023–2024, state-owned REC has approved a proposal to raise borrowing to Rs 1.5 trillion from Rs 1.2 trillion, the company announced on Thursday.
REC’s board of directors, during their meeting on November 30, 2023, has sanctioned a modification in the company’s market borrowing plan across diverse debt segments. This includes interchangeability among various financial instruments like bonds, debentures, term loans, external commercial borrowing, and commercial papers. The approved adjustment increases the market borrowing limit from Rs 1,20,000 crore to Rs 1,50,000 crore for the fiscal year 2023-24, as stated in a regulatory filing by the company.
According to the company, the board of directors has delegated authority to raise funds periodically throughout the current fiscal year for the revised market borrowing program, with the approval of appropriate authorities.
The board also gave the company permission to invest up to Rs 14.25 crore, or 19% of the proposed Rs 75 crore equity share capital of Hindustan Power Exchange (HPX), in equity.
According to the filing, the acquisition cost is one equity share at a time, and the total paid-up capital as of right now is just Rs 55.25 crore.
To build infrastructure in the fields of power, renewable energy, and logistics, REC offers long-term loans and financing to states, the federal government, and private enterprises.
Yet the business has also ventured into infrastructure financing for a number of other projects.
In a Memorandum of Understanding signed earlier this month, the company committed to providing Rs 30,000 crore in funding for infrastructure projects over the following five years with RailTel Corporation of India.
In 2018, HPX, which was formerly known as Pranurja Solutions Ltd., joined the Indian electricity market as a power exchange that provides a platform for the exchange of various electricity products.
