REC Ltd., a state-run power finance company, plans to become a zero non-performing asset company in fiscal 2025.
"There are around seven projects where we have made 100% provisioning, while there are a few operating projects which are in the process of bidding, like KSK Mahanadi and Sinnar project in Maharashtra, that we expect will be resolved this year," VK Devangan, chairman and managing director of REC, told NDTV Profit in an interview.
"No fresh NPAs got added to the kitty in the last eight quarters, and we expect to maintain this track record in coming quarters as well," he said.
The total value of the projects to be resolved is Rs 13,800 crore, according to him.
VK Devangan, CMD, REC Ltd. (Source: Company)
Thermal Power Projects Opportunity
The company expects that the conventional power sector—thermal power projects—will continue to bear the base load in the coming years as renewable power is intermittent (not stable) in nature. The government plans to add around 94,000 MW of thermal power projects by 2030, and the company sees robust opportunity from this segment, Devangan said.
Around 20,000 MW of power is likely to be added by NTPC Ltd., while the remaining 74,000 MW will be added by state entities. “We see an opportunity to finance around Rs 3,70,000 crore (37,000 MW) worth of projects at Rs 10 crore per MW in the coming years,” Devangan said.
Renewables To Be 30% Of AUM By 2030
The company expects contribution from the renewable sector to grow phenomenally over this decade. "By 2030, we expect the renewable sector's assets under management to grow to 30% of the total loan book. Our current asset under management is around Rs 5,09,000 crore, that we expect to grow to Rs 10 lakh crore by 2030," Devangan said.
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