REC to focus on thermal, nuclear projects; targets zero NPAs by FY25

REC will increase focus on thermal and nuclear power projects while maintaining green lending goals, as it eyes zero NPAs by the end of FY25, says CMD Jitendra Shrivastava

State-owned power sector financier REC Ltd will renew its focus on thermal power assets, anticipating growth in the segment to meet rising power demand, the company's senior management said during a post-results conference. The non-banking financial company (NBFC) is also exploring investment in nuclear power, particularly Small Modular Reactors (SMRs). The management noted that any SMR project by a state-owned entity would be of interest during its initial phase.

 

Recently, REC sanctioned two new thermal power plants in Rajasthan, two in Madhya Pradesh and one each in Haryana and Maharashtra. However, the company reiterated that its commitment to renewable energy remains intact, with plans to allocate 30 per cent of its loan portfolio to green energy by the end of this decade.

 

 

Speaking at the conference, newly appointed chairman and managing director (CMD) Jitendra Shrivastava said the company is aiming to become a “zero NPA” firm by the end of the current financial year.

 

“Our non-performing assets (NPAs) have come down significantly. We are now at 0.38 per cent as on 31 March 2025, and we hope to be a zero NPA company this year,” Shrivastava said.

 

REC reported a 5.6 per cent rise in consolidated net profit at ₹4,309 crore in Q4FY25. Total income rose to ₹15,348 crore, up from ₹12,706 crore in the same period last year.

 

For the full financial year 2024–25, REC’s net profit increased to ₹15,884.23 crore from ₹14,145.46 crore in FY24. Total income rose to ₹56,434 crore in FY25 from ₹47,571.23 crore in the previous year.