Rs 1,12,000 crore projects: Power Finance Corporation-backed company signs MoUs for projects related to solar, wind, hydroelectric power, battery energy, hydrogen, etc
The shares of the company have a PE of 10x and an ROE of 23 per cent.
REC Ltd informed that the company has participated at the “4th Global Renewable Energy Investors Meet & Expo (RE-INVEST 2024)” being held from September 16 to 18, 2024 at Gandhinagar, Gujarat. RE-Invest is a global event which brings together Government Officials, industry leaders, investors, researchers, and policymakers.
REC participated in the event and had engaging business discussions with several key stakeholders and leading RE developers. REC intends to be a key player in the country's journey of installed non-fossil-based generation capacity from 200 GW to 500 GW by 2030. REC has undertaken a non-binding financial commitment “Shapath Patra” of increasing its Renewables loan book to over Rs 3 lakh crore by 2030. This will increase the share of Renewables from the current 8 per cent to 30 per cent by 2030, as REC’s loan book is projected to be of Rs 10 lakh crore by 2030.
At the RE-INVEST 2024, REC signed non-binding Memorandum of Understandings (MoUs) with RE developers aggregating about Rs 1.12 lakh crore which will be implemented over a period of 5 years. These MoUs cover projects based on solar and wind hybrid projects, solar and wind round clock (RTC) projects, firm and dispatchable RE (FDRE) power, floating solar plants, ultra mega renewable energy parks, hydroelectric power projects, battery energy storage systems (BESS), pumped storage, hydropower, green ammonia/hydrogen, solar cell/module manufacturing and other innovative technologies.
Discussions are also underway for the financing of green energy corridors, wind turbine manufacturing and EV-ecosystems including associated charging infrastructure. Further, REC is also open to considering renewable projects by developers for the C&I segment having top-rated offtakes.
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About the Company
REC, a Central Public Sector Undertaking under the Ministry of Power and backed by Power Finance Corporation of India Ltd, plays a pivotal role in financing projects across the entire power sector value chain. Offering a range of loans from generation to distribution, REC supports the development of new power plants, strengthens transmission and distribution systems, and provides working capital for various operational needs. Additionally, the company extends its financing expertise to the infrastructure and logistics sector, supporting projects in areas such as metro, roads, highways, ports, waterways, and steel infrastructure. With strong sovereign support and a focus on government schemes, REC has been instrumental in driving the growth and development of India's power sector.
The company has a market cap of over Rs 1.40 lakh crore. The shares of the company have a PE of 10x and an ROE of 23 per cent. The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 425 per cent in 2 years. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.