REC loans for green projects record 6-fold jump to Rs 1.37 lakh crore

Government-owned power finance giant REC has recorded an over 6-fold jump to Rs 1,36,516 crore in loans sanctioned for renewable energy projects during 2023-24 compared to the corresponding figure of Rs 21,371 crore in 2022-23, official figures released on Monday showed.

The sharp increase in loans for renewable energy projects is part of the government’s strategy to reduce the country’s carbon footprint to fight climate change.

The total value of loans sanctioned by REC for the financial year that ended on March 31 is Rs 3.59 lakh crore which represents a robust 33.66 per cent increase over the corresponding amount for the previous year.

In January this year, REC Limited issued 61.1 billion Japanese yen 5-year, 5.25-year green bonds under its US$ 10 billion Global Medium Term Notes Programme to raise funds for renewable energy projects.

This was REC’s eleventh venture into the international bond market and inaugural Yen Bond issuance which was also the first Yen Green Bonds issuance by any Indian public sector undertaking.