This Will Drive REC’s Renewable Energy Loan Portfolio To Rs 3.5 Lakh Crore By 2030

REC Ltd., which finances and promotes power projects across the country, is targeting to increase its renewable energy portfolio to Rs 3.5 lakh crore by 2030 following the boost to the nuclear energy sector in Budget 2025, Chairman and Managing Director of the company Vivek Kumar Dewangan told NDTV Profit. 

Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, said that India will install around 100 gigawatts of nuclear energy by 2047. On the back of this, REC will benefit as it will have more companies to finance.

Talking to NDTV Profit, Dewangan said that the budget announcement will give REC India an additional capacity to disburse loans.

“In this year's budget, the honourable finance minister has already announced that India will start to install about 100 gigawatts of capacity from nuclear energy by the year 2047. That gives us an additional capacity addition in terms of lending to non-fossil fuel sources because nuclear is supposed to be a non-fossil fuel source,” he said.

The company is targeting a Rs 3.5 lakh crore renewable energy loan portfolio by 2030, the top executive mentioned.

“I am getting that our renewable energy portfolio will also increase substantially by the year 2030,” he said.

“We are targeting Rs 2 lakh crore, but if the nuclear energy component gets added, perhaps the renewable energy portfolio will increase to about Rs 3.50 lakh crore by the end of 2030,” Dewangan added.

The disbursement trend seen in Q3 will continue to happen in the upcoming quarters, according to the REC CMD.

“So this disbursement trend is going to continue because we have a huge pipeline of projects, particularly conventional coal-based generation projects. New projects are coming up, and we already sanctioned those projects,” Dewangan said.

“We feel a little disbursement has happened. This will pick up from 2026 onwards till 2028. Huge investment will happen in the coal-based capacities,” he added.

REC’s loan book grew by 14% in the quarter ended Dec. 31, 2024.

“What had happened during Q3 was that some prepayment and some repayment had happened. Our loan book has grown by 14% in Q3,” the CMD said.

The company is now aiming to increase this by 17% in Q4, Dewangan revealed.

“In Q4, we are expecting that our loan book will increase by 15 to 17%. Right now, at the end of Q3, our loan book is at 5.65 lakh crore,” he said.

Shares of REC Ltd. rose 4% in intraday trade on the NSE to a high of Rs 451.90 apiece. The stock was marginally up at Rs 438.25 per share at 2:40 pm, while the benchmark Nifty 50 was down 0.52% at 23,479.90 points.