NEW DELHI : REC Limited has approved a significant market borrowing program for the financial year 2025-26, totaling ₹1.70 lakh crore, during its Board of Directors meeting held on March 26, 2025.
The borrowing program includes a wide array of instruments, including domestic bonds, debentures, and external commercial borrowings (ECBs). Specific instruments outlined in the program are infrastructure bonds, zero-coupon bonds, perpetual bonds, tax-free bonds, and Green and ESG (Environmental, Social, Governance) bonds, among others. The company also plans to explore options such as capital gains tax exemption bonds under Section 54EC of the Income Tax Act.
In addition to the bond issuance, REC is set to raise funds via rupee term loans, short-term loans, and commercial papers. The program will be flexible, with different maturities and instruments chosen based on the company’s requirements and market conditions. The borrowing will be subject to the approval of the competent authority as delegated by the Board.
The total borrowing program is divided as follows:
- Domestic Bonds/Debentures: ₹1,55,000 crore
- External Commercial Borrowings (ECBs): Amount unspecified
- Short-Term Loans (STL): ₹10,000 crore
- Commercial Papers: ₹5,000 crore
The company clarified that short-term loans under six months and other facilities like cash credit will be limited to ₹20,000 crore and will not be part of the overall borrowing program.
Further, REC also announced the appointment of Smt. Parminder Chopra, the current Chairman and Managing Director (CMD) of Power Finance Corporation Limited, as an Additional Director on its Board. This appointment, effective March 21, 2025, is in the capacity of CMD (additional charge). The company confirmed that the requisite disclosures in compliance with SEBI guidelines were submitted to stock exchanges on March 21, 2025.
REC Limited, a government-owned public sector company, is dedicated to providing financing for the power sector in India.
