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Record 6-Fold Increase in REC Loans for Green Projects Reaches Rs 1.37 Lakh Crore

Government-owned power finance giant REC has reported a significant increase in loans sanctioned for renewable energy projects, with an over 6-fold jump to Rs 1,36,516 crore in 2023-24 compared to Rs 21,371 crore in 2022-23. This surge in loans is part of the government’s strategy to reduce the country’s carbon footprint to combat climate change. The total value of loans sanctioned by REC for the financial year ending on March 31 is Rs 3.59 lakh crore, representing a robust 33.66% increase from the previous year.

In January this year, REC Limited issued 61.1 billion Japanese yen 5-year, 5.25-year green bonds under its US$ 10 billion Global Medium Term Notes Programme to raise funds for renewable energy projects. This marks REC’s eleventh venture into the international bond market and inaugural Yen Bond issuance, also being the first Yen Green Bonds issuance by any Indian public sector undertaking.

The sharp increase in loans for renewable energy projects reflects the government’s commitment to promoting sustainable energy initiatives and reducing the country’s reliance on fossil fuels. This move not only aligns with global efforts to combat climate change but also signifies a shift towards a cleaner and more environmentally friendly energy sector in India. Such initiatives by government-owned entities like REC play a crucial role in driving the country towards a greener and more sustainable future.

IANS

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