REC Ltd has been accorded the status of a ‘Maharatna’ central public sector enterprise (CPSE), which gives it enhanced operational and financial autonomy. An order to this effect was issued by the Department of Public Enterprises, under the Ministry of Finance, on Wednesday.
Chairman and Managing Director of REC, Vivek Kumar Dewangan said that REC achieved this feat owing to its adaptability, resilience and consistent performance even during the global Covid-19 pandemic.
“In FY22, REC made its highest ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, owing to its cost-effective resource management and strong financial policies,” he said.
The company’s board will have increased powers when making financial decisions as a result of the granting of Maharatna status, according to a statement from the company.
In a ‘Maharatna’ CPSE, the board has the authority to invest in equity in financial joint ventures, wholly-owned subsidiaries, and mergers and acquisitions both in India and abroad, with a limit of 15 percent of the CPSE’s net worth, up to Rs 5,000 crore per project.
In addition, the board can structure and implement programs related to personnel and human resource management, as well as training. REC can also enter into technology joint ventures or other strategic alliances.
An Indian non-banking finance company (NBFC) established in 1969, REC focuses on power sector financing and development. It comes under the aegis of the Power Ministry.