The move would provide the state-run company greater operational and financial autonomy.
It has become the 12th company to attain the Maharatna status.
“We are delighted and proud to share that the Government of India has accorded the status of ‘Maharatna’ to REC, the highest recognition for a CPSE.
This will impart enhanced powers to the REC Board while taking financial decisions,“ the company said in a tweet.
The other 11 Maharatna CPSEs at present are Power Finance Corporation, Bharat Heavy Electricals Ltd, Bharat Petroleum Corp. Ltd, Coal India Ltd, GAIL (India) Ltd, Hindustan Petroleum Corp. Ltd, Indian Oil Corp. Ltd, NTPC Ltd, Oil & Natural Gas Corp. Ltd, Power Grid Corp. of India Ltd, and Steel Authority of India Ltd.
India has 13 Navratna and 74 Miniratna CPSEs.
For a company to be categorized as a Maharatna status, a company should be listed on an Indian stock exchange and have an average annual turnover of over ₹25,000 crore during the previous three years. It should also have an average annual net worth during the previous three years of more than ₹15,000 crore and an average net profit of over ₹5,000 crore during the same period.
REC can now invest up to ₹5,000 crore, or 15% of its net worth, in a single project after its Maharatna status.
The development comes at a time when Centre is also considering granting the status of a development finance institution (DFI) to REC Ltd to enable the state-run company to steer global climate funding and net zero investment in the country.
A statement from the company on 17 September, said that in the recent AGM of the company held on 16 September, the investors were apprised by the CMD Vivek Kumar Dewangan about the company’s future vision to diversify into energy transition and future technology funding.
An NBFC focusing on power sector financing and development across India, REC was established in 1969.
It provides financial assistance to state electricity boards, state governments, central and state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
