State-owned financial major REC on Sunday said it has received approval from the Reserve Bank of India (RBI) to set up a wholly-owned subsidiary in GIFT City, Gujarat.
The subsidiary will carry out several financial activities as a financial company within GIFT, including lending, investments and other services.
“The GIFT City platform provides an enabling environment for international lending activities, coupled with world-class infrastructure. We are confident that REC will leverage these advantages to carve a niche for itself in the global market,” said Vivek Kumar Dewangan, CMD, REC. .
The GIFT City entity will not only present new business opportunities for REC but will also significantly contribute to the growth of the country’s energy sector.
“We look forward to leveraging this strategic move to further propel REC’s mission of driving growth in the Indian power and infrastructure sector while expanding our footprint on the global stage,” added Dewangan.
The decision to expand its operations at GIFT City in Gandhinagar comes as REC continues to diversify its portfolio and explore new growth avenues.
REC, under the Ministry of Power, reported a 34 per cent increase in net profit at Rs 4,016 crore for the January-March quarter of FY24. Operating revenue increased by 25 for cent to reach Rs 12,613 crore during the quarter.