Context:
REC Limited, a leading NBFC and Maharatna Central Public Sector Enterprise under the Ministry of Power, has received the SKOCH ESG Award 2024 in the ‘Renewable Energy Financing’ category.
Key highlights:
- “The award underscores REC’s commitment to sustainable financing, paving the way for a greener future and accelerating the transition to renewable energy.
- REC has emerged as a significant player in India’s clean energy transition, actively contributing to the nation’s sustainable future through various initiatives and achievements.
- In addition, REC has engaged in one-on-one discussions with various developers of green projects across sectors such as solar, wind, pumped storage projects, E-mobility, RE manufacturing, green ammonia and green hydrogen, and battery storage.
- REC anticipates a significant expansion in its renewable energy portfolio, with projections indicating growth to 10 times its present value, reaching more than Rs. 3 lakh crores by 2030, representing approximately 30% of its Assets Under Management.”
SKOCH ESG Awards
- The SKOCH ESG Award is a recognition given to organizations that exhibit exceptional performance in Environmental, Social, and Governance (ESG) practices.
- This award and the assessment process is an important benchmark for evaluating organizations’ commitment to India 2047.
- It aims to highlight the significance of sustainable investments and processes in shaping a sustainable and growing business future.
Objectives:
- Promote Sustainability: Encourage businesses to integrate ESG principles for long-term benefit.
- Benchmark Performance: Set a bar for ESG implementation in India.
- Showcase Success: Inspire others by highlighting achievements in ESG.
Challenges Addressed:
- Limited Awareness: Raise awareness about ESG’s importance.
- Implementation Hurdles: Showcase successful integration models.
- Measurement Issues: Encourage standardized ESG reporting.
Focus Areas:
- Environmental Practices: Resource conservation, pollution reduction, climate change mitigation.
- Social Responsibility: Social equity, employee well-being, community development.
- Governance: Transparency, accountability, ethical decision-making.
About Rural Electrification Corporation (REC) Ltd.
- REC is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power and is registered with RBI as a Non-Banking Finance Company (NBFC), and Infrastructure Financing Company (IFC).
- REC finances the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy, and new technologies like Electric Vehicles, Battery Storage, Pumped Storage Projects, Green Hydrogen, and Green Ammonia projects.
- REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been a nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last-mile distribution system, 100% village electrification and household electrification in the country.
Miniratnas, Navratnas and Maharatnas
| Criteria | Miniratna | Navratna | Maharatna |
| Number of CPSEs | 64 | 17 | 13 |
| Minimum annual turnover | Rs. 200 crore | Rs. 1,000 crore | Rs. 25,000 crore |
| Minimum annual net worth | Rs. 100 crore | Rs. 500 crore | Rs. 15,000 crore |
| Minimum annual net profit | Rs. 30 crore | Rs. 100 crore | Rs. 5,000 crore |
| Financial autonomy | Can take investment decisions up to Rs. 500 crore without government approval | Can take investment decisions up to Rs. 1,000 crore without government approval | Can take investment decisions up to Rs. 5,000 crore without government approval |
| Ability to raise funds abroad | Can raise funds abroad up to a certain limit | Can raise funds abroad without any limit | Can raise funds abroad without any limit |
| Flexibility in mergers and acquisitions | Have some flexibility in entering into joint ventures and partnerships with foreign companies | Have greater flexibility in entering into joint ventures and partnerships with foreign companies | Have the highest degree of flexibility in entering into joint ventures and partnerships with foreign companies |