REC Limited Funding Push Continues With Deals For Serentica, GreenKo

REC Limited, a Maharatna PSE and the subsidiary firm of Power Finance Corporation is among the key govt.owned NBFCs mandated for enabling national goals. The firm has been very active of late.  REC had hosted the Green Finance Summit in July 2023 on the side lines of G20, where one-on-one discussions with RE developers were conducted, leading to the successful signing of Memorandums of Understanding (MoUs) amounting to a total of around Rs. 2.86 lakh Crore. Virtually every large developer announced commitments from REC for their projects subsequently. The REC board has set a target to attain a green finance loan portfolio totaling Rs. 3 lakh Crore by the fiscal year 2030.

The latest news is REC Limited has sanctioned Rs. 6,075 Crore to Greenko for erection of 1440 MW Standalone Pumped Storage Project.  This follows the announcement of a similar arrangement of over Rs. 3,081 Crore to Serentica Renewables 560 MW peak greenfield solar-wind hybrid project at Gadag, Karnataka. The documentation has already been inked and disbursement of funds is
also in advance stages. While GreenKo’s pumped storage project will support round the clock renewable energy, Serentica itself is focused on green energy for energy intensive sectors.

The funding announcements will be welcome, even as many developers will consider the terms on offer versus other institutions before actually availing such funding from REC. But the very possibility of funding from REC will reassure many to make plans the country needs to meet its objectives.