RBI allows REC to set up subsidiary in GIFT City

REC Limited has announced that it has received a ‘No Objection Certificate’ from the Reserve Bank of India (RBI) for setting up a wholly owned subsidiary in International Financial Services Centre (IFSC), Gujarat International Finance Tec-City (“GIFT”), Gandhinagar, Gujarat.

REC is a Maharatna Central Public Sector Enterprise under the Ministry of Power and also a leading NBFC.

The decision to expand operations into GIFT, a burgeoning hub for financial services in India, comes as REC continues to diversify its portfolio and explore new avenues for growth. The proposed subsidiary will engage in a range of financial activities as a finance company within GIFT, including lending, investment, and other financial services.

Speaking on the development, CMD, REC Limited, Vivek Kumar Dewangan said, “The GIFT City platform offers a conducive environment for international lending activities, coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market. The entity at GIFT City will not only present new business opportunities for REC but will also contribute significantly to the growth of the country’s energy sector.”

He also added, “We look forward to leveraging this strategic move to further propel REC’s mission of fostering growth in India’s power and infra sector while expanding our footprint on the global stage.”

REC has been stepping up its investments into the biofuels sector as well. REC recently availed a Green Loan of Japanese Yen (JPY) 60.536 billion to finance green projects in India.