REC signs MOU with Power Ministry detailing targets for FY20-21
Ten News Network
Department of Public Enterprises (DPE) has finalised ambitious targets for REC Ltd in the ongoing financial year. Revenue target for FY2021 has been set at Rs. 35,000 Cr, up by 17.5% from the previous year achievement. Operating profit margin target has been set at 28% as against 23.23% achieved in previous year and target for parameter ‘PAT as a % of Avg. Net worth’ has been set at 17% as against 14.05% achieved in previous year. Several other performance-related parameters and non-financial parameters including parameters relating to Government of India’s ambitious program of DDUGJY have also been agreed to. The MoU was signed by Shri Sanjeev Kumar Gupta, CMD – REC Limited and Shri Ravinder Singh Dhillon, CMD – PFC Limited.
REC is confident to meet these targets in excellent category despite the ongoing pandemic. A major boost is expected from the “Aatmanirbhar Bharat” scheme for state utilities, whereby REC is expected to provide Rs. 45000 Cr of loan assistance within this year and also the thrust to financing large Renewable Energy projects where sanctions during the first quarter itself have surpassed the assistance provided in the previous year. Further, during the first quarter of FY 2020-21, REC has achieved an all-time high profit of Rs. 1,839 Cr for any quarter. Revenue from operations achieved for the quarter was Rs. 8,421 Cr which is indicative of the successful achievement of set targets by year end. The MoU has been a standard performance measure for all CPSEs and REC has been delivering exemplary performances for the last several years.
About REC Limited: REC Limited is a Navratna NBFC focusing on Power Sector Financing and Development across India. Established in 1969, REC Limited has completed over fifty years in the area of its operations. It provides financial assistance across the power-sector value chain. Apart from this, REC is also the nodal agency for Govt. of India flagship schemes in the Power sector like Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Saubhagya, etc.