Public sector lender REC, in addition to expanding its portfolio in the renewable energy sector, will aim to increase its footprint in the logistics sector by sanctioning loans up to Rs 2.5 trillion annually by 2030, Chairman and Managin Director Vivek Kumar Dewangan said on Monday.
The company plans to sanction loans of Rs 1 trillion to the roads and highways sector in the current financial year, up from Rs 85,000 crore in FY23.
The Chairman said that the development of the road and highway sector in PPP mode requires funding from the private sector.
In the renewable energy sector, REC aims to tenfold it’s portfolio to Rs 3 trillion by 2030 from the current Rs 30,000 crore, Dewangan said. The company targets for 30% of its Asset Under Management to come from renewable energy sector.
“There will be a tenfold increase in our renewable energy portfolio. It will increase to Rs 3 trillion and our asset under management will grow to Rs 10 trillion.”
In the financial year 2022-23, the company had sanctioned more than Rs 85,000 crore to the logistics sector of the total sanction of Rs 2.68 trillion. “About 32% of our total sanction came from non ventures in logistics last year,” the Chairman said.
In the first half of the current financial year, the company’s Asset Under Management has increased to Rs 2.75 trillion.
REC’s Asset Under Management is going at the rate of 20% compared to 13% last year.
As of November, the company’s disbursement stood at Rs 1.10 trillion. “And as we are talking, our total disbursement has already crossed Rs 1.23 trillion in the current financial year,” Dewangan said.
“We hope that total disbursement in the current financial year will cross Rs 1.50 trillion.”