The granting of ‘Maharatna’ status will impart enhanced powers to the company’s board while taking financial decisions, REC said in a statement.
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 CPSE concerned, 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.
Chairman and managing director Vivek Kumar Dewangan said REC achieved this feat due 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," he said.
“REC has played a key role in the success of the flagship schemes of the Government of India such as DDUGJY and SAUBHAGYA and has contributed towards achieving village and household electrification in the country. REC is currently playing the role of nodal agency for Revamped Distribution Sector Scheme (RDSS), for revamping the distribution sector to alleviate the financial & operational issues,“Dewangan said.
Incorporated in 1969, REC focuses on power sector financing and development across India. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
