NEW DELHI: State-run Rural Electrification
Corp (REC) is looking at diversifying from power sector lending to
financing equipment manufacturing, energy efficiency schemes, power plants
renovation and coal blocks development, chairman PV Ramesh told ET in an exclusive interview.
Ramesh said the company is even considering changing its name to suit its
diversification plans.
He said the company sees big investment opportunities in the power distribution
sector, which is still the weakest link in the chain. Lot of investments will
be required in the distribution organisations, he said, adding the
apprehensions in lending to discoms have eased post the Centre’s debt recast
scheme, Ujwal Discom
Assurance Yojana (Uday), as the utilities have greater fiscal space for
borrowing.
"A mechanism of such nature as Uday has never existed where all states,
Centre and distribution companies commit themselves to certain performance
benchmarks in a strict time frame. It is not just commitment of the technocrats
and bureaucrats but also the political spectrum as well. Power sector is as
good as your discoms," he said.
REC is also betting big on upgradation of interstate transmission links and 175
GW renewable energy generation plans of the government. The company plans to
lend to renovation and modernisation programmes of old thermal power projects
as per the environment standards.
"We are keen on lending to upstream activities like coal blocks development.
So far, we have not financed energy efficiency programmes or manufacturing of
such equipment. We may look at supporting such manufacturers to boost 'Make in
India'. There is also so much untapped potential in the hydropower
sector," he said.
Ramesh said REC has the mandate to invest in the entire value chain of the
power sector. He said the company has lowered interest rates for renewable
energy projects. He said the company has held discussions with chief financial
officers of renewable energy firms for offering customised financing to such
projects. Ramesh said the interest rates are at the lowest and are likely to
pick up in the coming months.
REC expects to borrow Rs 55,000 crore in the current financial year. Ramesh
said the company's non-performing assets stood at 2% of its Rs 2,00,000 crore
loan book and that it has chalked out detailed plans to recover each NPA.
Source: MarketTimesTv
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