REC Ltd, a Maharatna Central Public Sector Enterprise under the Ministry of Power and a leading NBFC, has obtained a ‘No Objection Certificate’ from the Reserve Bank of India to establish a wholly-owned subsidiary in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT), situated in Gandhinagar.
This strategic decision to extend operations into GIFT, a burgeoning hub for financial services in India, is in line with REC’s objective to broaden its portfolio and explore new avenues for growth. The proposed subsidiary will conduct various financial activities as a finance company within GIFT, encompassing lending, investment, and other financial services.
Commenting on the development, CMD of REC Ltd, Vivek Kumar Dewangan, stated, “The GIFT City platform provides a conducive environment for international lending activities, complemented by world-class infrastructure. We are confident that REC will leverage these advantages to establish 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 anticipate leveraging this strategic move to further advance REC’s mission of fostering growth in India’s power and infra sector while expanding our footprint on the global stage.”
REC Ltd’s approval to form a wholly-owned subsidiary in the International Financial Services Centre at GIFT City underscores its commitment to diversifying its portfolio and embracing new growth prospects. By venturing into GIFT, REC aims to capitalize on the thriving hub for financial services in India, strategically positioning itself for expanded financial activities, including lending, investment, and other services.
