State-owned REC approves hike in borrowing to Rs 1.5 trillion for FY24

State-owned REC Ltd on Thursday said its board has approved a proposal to increase borrowing to Rs 1.5 lakh crore from Rs 1.2 lakh crore for 2023-24.

State-owned REC Ltd on Thursday said its board has approved a proposal to increase borrowing to Rs 1.5 trillion from Rs 1.2 lakh crore for 2023-24.

The Board of Directors of REC Ltd, in its meeting held on November 30, 2023, approved revision in its market borrowing programme under different debt segments with interchangeability among various instruments, including bonds/debentures, term loans, external commercial borrowing, commercial papers etc. on private/public placement basis from Rs 1,20,000 crore to Rs 1,50,000 crore for 2023-24, the company said in a regulatory filing.

The funds under the said revised market borrowing programme will be raised, from time to time, during the financial year 2023-24, with the approval of competent authority as per powers delegated in this regard by the Board of Directors, it added.

The board also approved the proposal of equity investment in Hindustan Power Exchange Ltd (HPX) for an amount up to Rs 14.25 crore (i.e. up to 19 per cent of the proposed equity share capital of Rs 75 crore of HPX).

As of now, the paid-up capital is only Rs 55.25 crore, the filing said.

The cost of acquisition is Re one per equity share (at par).

HPX (formerly Pranurja Solutions Ltd) is the new-age power exchange in the Indian electricity market.

It was incorporated on April 24, 2018. It provides a comprehensive market platform for different electricity products, providing a transparent, seamless and robust exchange platform for the market participants.

HPX provides an opportunity for market participants to transact in the most equitable and transparent manner, giving its customers unmatched user experience through advanced technology and customised value-added services.