NEW DELHI : REC Ltd., a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received approval from the Central Board of Direct Taxes to issue ₹5,000 crore in zero coupon bonds.
The approval, granted via Notification No. 52/2025 dated May 30, 2025, allows REC to issue 500,000 zero coupon bonds with a tenure of 10 years and six months.
Issued at a deep discount and redeemable at face value upon maturity, the bonds offer tax benefits under the Income-tax Act of 1961.
REC’s previous CBDT-notified issuance in fiscal year 2024–25 drew strong demand, with the ₹5,000 crore offering receiving nearly seven times the subscription. The bonds carried a yield of 6.25%, around 100 basis points below market rates, setting a new industry benchmark.
The success helped REC reach a broader investor base and diversify its funding at competitive costs.
REC said it remains committed to leveraging innovative financing tools to support India’s energy infrastructure.
