REC Ltd., formerly known as Rural Electrification Corporation, is targeting a loan book of Rs 50,000 crore by the end of 2030, according to its Chairman and Managing Director Vivek Kumar Dewangan.
“It will kick on from this current financial year and next financial year, 2025-2026 itself, because sanctions will start happening from 2026 onwards, but gradually it will pick up. That's why I am targeting the loan book from nuclear power to the tune of Rs 50,000 crore by the end of 2030,” he said in a conversation with NDTV Profit.
“In the next 22 years, about 1 lakh megawatts of power will come from nuclear power, and the cost per megawatt for nuclear power as of today is about Rs 13-14 crore per megawatt. So it will entail a total investment of about Rs 13-14 lakh crore over the next 22 years, but it will take some time to pick up,” he added.
He said that in the financial year ending March 2026, REC will sanction loans to the tune of Rs 15,000 crore for nuclear power projects. “Sanctions definitely will happen to the tune of around Rs 15,000 crore next year, and every year about Rs 15,000 to 20,000 crore sanctions will keep happening, but disbursements will pick up from April 2026 onwards only. By the end of 2030, gradually our loan book from nuclear power projects will increase to about Rs 50,000 crore,” the CMD explained.
Regarding the public sector power projects financier's AUM, he said that though the company aimed to double it to Rs 10 lakh crore by 2030, it might reach the target by 2028-29 itself.
“The kind of growth that is happening around 14-15% that has been happening, we might reach this asset under management target of Rs 10 lakh crore before 2030; maybe 2028-29 itself we will be able to achieve that AUM,” he said.
Dewangan said that the company is targeting zero net NPAs once the resolution process is over in the current calendar year. The company is financing only those renewable energy projects where Power Purchase Agreements (PPAs) are in place, and disbursements are taking place only after the PPAs are signed, he said.
Shares of REC Limited closed 0.93% higher at Rs 405.95 apiece on the NSE on Thursday, compared to the benchmark Nifty50 settling at 22,397.2, down 0.33%.
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