REC Limited Receives RBI Nod for Wholly Owned Subsidiary in GIFT City

REC Limited, an NBFC and Maharatna Central Public Sector Enterprise under the Ministry of Power, has been granted a ‘No Objection Certificate’ by the Reserve Bank of India to establish a wholly owned subsidiary in the International Financial Services Centre (IFSC) located within Gujarat International Finance Tec-City (GIFT City), Gandhinagar, Gujarat.

The decision to venture into GIFT City, a hub for financial services in India, aligns with REC's strategy to diversify its portfolio and explore new avenues for growth. The proposed subsidiary aims to undertake various financial activities as a finance company within GIFT, encompassing lending, investment, and other financial services.

Commenting on this milestone, CMD of REC Limited, Vivek Kumar Dewangan, emphasized the strategic significance of this move, stating, “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."

"The entity at GIFT City will not only present new business opportunities for REC but will 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,” added Dewangan.

This move represents REC Limited's commitment to expanding its presence in key financial hubs.