State-owned REC has approved a proposal to increase the borrowing to Rs 1.5 trillion from Rs 1.2 trillion for the financial year 2023-24, the company said on Thursday.
“The board of directors of REC, in its meeting held on November 30, 2023, approved revision in its market borrowing programme under different debt segments with interchangeability among various instruments, including bonds/debentures, term loans, external commercial borrowing, commercial papers etc. on private/public placement basis from Rs 1,20,000 crore to Rs 1,50,000 crore for 2023-24,” the company said in a regulatory filing.
The firm also said that the funds under the revised market borrowing programme will be raised from time-to-time during the current financial year with the approval of competent authority as per powers delegated in this regard by the board of directors.
The company also received approval from the board for equity investment in Hindustan Power Exchange (HPX) for an amount up to Rs 14.25 crore i.e. up to 19% of the proposed equity share capital of Rs 75 crore of HPX.
The cost of acquisition is Rs 1 per equity share and the paid-up capital is only Rs 55.25 crore as of now, according to the filing.
REC provides financing and long term loans to states, Centre and private companies for creation of infrastructure in the power, renewable energy, and logistics sector.
However, the company has also forayed into financing in the infrastructure of various other projects.
Earlier this month, the company signed a Memorandum of Understanding with RailTel Corporation of India committing financial assistance of Rs 30,000 crore for infrastructure projects over the next five years.
HPX (formerly Pranurja Solutions Ltd) has entered the Indian electricity market in 2018 as a power exchange offering a market platform for different electricity products.