REC Ltd receives RBI nod for GIFT City subsidiary expansion

Maharatna PSU REC ventures into Gujarat’s IFSC, aiming for international financial activities and sector growth.

REC Ltd, a Maharatna Central Public Sector Enterprise under the Ministry of Power and a leading NBFC, has received ‘No Objection Certificate’ from the Reserve Bank of India for setting up a wholly-owned subsidiary in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT), located in Gandhinagar. 

This decision to expand operations into GIFT, a burgeoning hub for financial services in India, aligns with REC’s strategy 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.

Speaking on the development, CMD, REC Ltd, Vivek Kumar Dewangan said, “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 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 global stage.”

REC Ltd’s approval to establish a wholly-owned subsidiary in the International Financial Services Centre at GIFT City reflects its commitment to diversifying its portfolio and embracing new growth opportunities. By venturing into GIFT, REC aims to leverage the burgeoning hub for financial services in India, positioning itself strategically for expanded financial activities including lending, investment and other services.