NEW DELHI: Rural Electrification Corporation (REC), the government-owned power finance company, may soon become the 12th Maharatna central public sector enterprise (CPSE). According to official sources, the meeting of the ministerial committee was held to consider the proposal for the grant of Maharatna status to REC limited.
“The meeting of the Inter-Ministerial Committee was held on 1st June 2022 to consider the proposal of the Ministry of Power for grant of Maharatna status to REC limited. The meeting was held under the Chairmanship of Secretary, DPE and recommended the grant of Maharatna status to REC for consideration of the Apex Committee,” said the official.
However, the official said the apex committee meeting was scheduled but there is no update till now.
A CPSE is granted Maharatna status if it has reported more than Rs 5,000 crore net profit for three consecutive years, an average annual turnover of Rs 25,000 crore for three years or should have an average annual net worth of Rs 15,000 crore for three years.
REC is a non-banking financial company (NBFC) and it focuses on power sector financing. It reported revenue of Rs 39,230 crore in FY22, Rs 35,410 crore in FY21and Rs 29,829 crore in FY20. It made net profits of Rs 10,045 crore in FY22, Rs 8,361 in FY21 and Rs 4,886 crores in FY20.
If the company is awarded the Mahartana status, it can invest up to Rs 5,000 crore, or 15% of its net worth, in a single project apart from being granted enhanced powers by the government for undertaking mergers and acquisitions.