REC approves over 3081cr Serentica's 560 MW solar-wind project in Gadag, Karnataka

Rural Electrification Corporation Limited, a Non-Banking Financial Company (NBFC) in power sector, has approved a significant debt funding of over Rs. 3,081 Crore for Serentica Renewables, a renewable energy company. This funding will support Serentica's 560 MW peak greenfield solar-wind hybrid project located in Gag district, Karnataka. According to Ministry of Power, loan agreements have been formally executed, and disbursement process is currently underway.

REC’s move comes as India is on its path towards an energy transition and aligns with nation's goals set in COP26 and recent pledges me under India’s G20 Presidency. According to MoP, REC will achieve a green finance loan book of Rs. 3 lakh Crore by fiscal year 2030.

Chairman Vivek Kumar Dewangan, expressed pride in being at forefront of India's journey towards a sustainable energy future. He stated, “Our partnerships and collaborations are a testament to our commitment to align with global visions for a cleaner and greener planet. REC envisions itself as leing financing partner for India's energy transition, contributing significantly to global mission of 'one world, one family, one future' as outlined by G20."

Established in 1969, REC has over fifty-four years of experience in providing financial assistance across power sector value chain, encompassing Generation, Transmission & Distribution, and Renewable Energy projects. In recent developments, REC has diversified into non-power Infrastructure and Logistics sectors, encompassing critical areas like airports, metro, railways, ports, and bridges.

On September 6, REC Limited convened its 54th Annual General Meeting (AGM). meeting, chaired by Dewangan, saw participation of all Directors on Company's Board. Numerous shareholders also attended meeting virtually.

Dewangan, in conference, h said, “REC is committed to increasing its present loan portfolio of Green Projects to extent of more than ten times by year 2030 amounting to ₹ 3 lakh crore. REC has been known for its rural electrification efforts; now it would be known for its Renewable Energy (RE) focused initiatives including solar, wind, hybrid, and e-mobility projects, as well as new areas like Green Hydrogen, Green Ammonia Projects, round--clock projects involving bundling of RE with rmal power and ethanol manufacturing.”

Furrmore, Ministry of Power has entrusted REC with authority to lend to non-power infrastructure & logistics sectors, facilitating accelerated development of nation. Dewangan reported that in first year alone, REC has sanctioned over ₹85,700 crore towards various projects, spanning critical sectors from Metro to Healthcare, constituting approximately 32 percent of Company's overall sanctions in last financial year.

In terms of financial matters, Dewangan revealed that REC issued bonus shares in a 1:3 ratio in August 2022, substantially increasing share capital. REC also stood out as one of highest dividend-paying companies in its category. For FY23, Board proposed a final dividend of ₹4.35 per share, in dition to Interim Dividends alrey disbursed, bringing total dividend payout for FY23 to ₹3,318 Crore.