On January 23, REC Ltd announced its commitment to provide financial assistance of up to Rs 1,20,000 crore for the implementation of rooftop solar panels under the Pradhan Mantri Suryoday Yojana. This statement was issued by REC’s Chairman and Managing Director (CMD), Vivek Kumar Dewangan, a day after Prime Minister Narendra Modi unveiled his decision to launch the rooftop solar installation scheme for one crore households upon returning from Ayodhya’s Ram temple consecration ceremony.
Dewangan disclosed that a one-year target has been set for the installation of rooftop solar panels in one crore households as part of this initiative. The Ministry of New and Renewable Energy (MNRE) is actively working on formulating guidelines for the scheme, which are expected to be released soon.
Designating REC as the overarching program implementation agency for the rooftop solar scheme, the MNRE has empowered the company to issue a Line of Credit to eight central public sector undertakings (CPSEs), each receiving approximately Rs 15,000 crore. These CPSEs, including NTPC, NHPC, EESL, PowerGrid, SECI, THDC, SJVN, and NEEPCO, will play a proactive role in rooftop solar installations under the Renewable Energy Service Company (RESCO) model.
REC has been entrusted with a target of obtaining sanctions for 40 GW of rooftop solar installations until 2026. With the recent announcement of the rooftop solar scheme for households by PM Modi on January 22, REC anticipates achieving over 10 GW of this target within the next year.
Despite acknowledging the challenges in coordinating with various stakeholders such as rooftop owners, distribution companies, vendors, and financing entities, Dewangan expressed confidence in meeting the set target. REC Ltd, aiming to expand its renewable energy loan portfolio to Rs 300,000 crore by 2030, has already sanctioned about Rs 125,000 crore.
As of January 23, REC Ltd reported a net profit of Rs 3,269.3 crore for the quarter ending December 2023, reflecting a 13.6 percent increase compared to the corresponding period in the previous year. The company’s net profit in the third quarter of the previous fiscal year stood at Rs 2,878 crore.
