REC plans to increase loan book by two-fold to Rs 10 lakh crore by 2030

State-owned REC Ltd plans to raise the share of renewable energy in its loan portfolio to around 25-30% by FY30 from the current 6.8%, chairman and managing director Vivek Kumar Dewangan said on Thursday.

The non-banking financing company would expand its loan book under its renewable energy portfolio to ₹2.4 lakh crore by FY30 to achieve this target.

The company’s current loan book is ₹4.35 lakh crore, which it plans to raise to ₹10 lakh crore by the given timeline.

The share of conventional power in the company’s loan book currently is around 39%, Dewangan said.

Apart from solar and wind power projects, the company is currently looking at financing pumped hydro storage, solar modules manufacturing, and electric vehicle projects.

The company is betting big on green hydrogen, green ammonia, and round-the-clock power projects, including renewables bundled with thermal, and ethanol manufacturing.

FOREIGN CURRENCY LENDINGThe company is looking to finance green hydrogen, green ammonia and other projects for companies that have “dollar revenues” and want to borrow in dollar terms, which will also save hedging costs. REC is in the process of setting up a subsidiary for the same in GIFT International Financial Services Centre, Gandhinagar.

“Once the subsidiary is set up, we will be able to borrow in dollar terms and lend the developers the same,” Dewangan said.

As per the RBI norms, NBFCs cannot lend in foreign currencies but GIFT IFSC is an alternative for such transactions.

As for raising funds for its green lending portfolio, the company said it has various options and funds will not be an issue.