New Delhi [India], May 5 : REC Limited, a non-banking financial company, has received a No Objection Certificate (NOC) from Reserve Bank of India (RBI) for setting up a subsidiary in Gujarat International Finance Tech- City ( GIFT) in Gandhinagar, Gujarat.
"The decision to expand operations into GIFT, a burgeoning hub for financial services in India, comes as REC continues to diversify its portfolio and explore new avenues for growth. The proposed subsidiary will engage in a range of financial activities as a finance company within GIFT, including lending, investment, and other financial services" according to a filing by the company on the stock exchange.
REC provides long-term loans and other financing products to State, Centre, and Private Companies for the creation of infrastructure assets in the country.
"The GIFT City platform offers a conducive environment for international lending activities coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market" said Vivek Kumar Dewangan, CMD, REC Ltd.
He further added that "The entity at GIFT City will not only present new business opportunities for REC but also contribute significantly to the growth of the country's energy sector. We look forward to leveraging this strategic move to further propel REC's mission of fostering growth in India's power and infra sector while expanding our footprint on the global stage."
The GIFT City, a developing business district in Gujarat, is poised to become India's premier smart city and will offer spaces for businesses.
REC is a 'Maharatna' company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
The company is financing the power-infrastructure sector comprising generation, transmission, distribution, renewable energy and new technologies like electric vehicles, battery storage, pump storage projects, green hydrogen, green ammonia projects etc.