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Nuclear Space Endeavor by REC Identifies Potential Lending Market Worth INR 12 Lakh Crores

Nuclear power lending seea a Rs 12 lakh crore opportunity for REC; focus expands to thermal and renewable energy. Aim is to double AUM to Rs 10 trillion by 2030. SMRs, net-zero NPAs, and a joint venture with BHEL are part of REC's strategy to boost clean and conventional energy portfolios.

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Nuclear power finance sees an opportunity worth Rs 12 lakh crore, as REC expands focus towards...
Nuclear power finance sees an opportunity worth Rs 12 lakh crore, as REC expands focus towards thermal and renewable energy. Setting sights on doubling Assets Under Management (AUM) to Rs 10 trillion by 2030, REC is aggressively advancing its clean and traditional energy portfolio. Strategies include Small Modular Reactors (SMRs), zero-debt Non-Performing Assets (NPAs), and a joint venture with BHEL for accelerated growth.

REC Steps into Nuclear Power, Eyes Rs 12 Lakh Crore Opportunity

Nuclear Space Endeavor by REC Identifies Potential Lending Market Worth INR 12 Lakh Crores

Status-owned REC Limited, a leading non-banking finance company, is mulling over entering the nuclear power sector within the next couple of years. According to Director (Finance) Ajoy Choudhury, this move comes with an estimated Rs 10-12 lakh crore opportunity for the company [1]. REC is particularly interested in collaborating with public sector companies develop small modular reactors (SMRs) for efficient and less-expensive nuclear power [2].

Choudhury mentioned that REC will additionally focus on expanding its footprint in conventional thermal power projects financing. The central government aims to boost the country's thermal capacity to meet burgeoning power demand, targeting an additional 95 giga watts (GW) by 2031-32,up from the previous 80GW [3].

Furthermore, REC acts as the principal implementing agency for the Pradhan Mantri Suryagrah Muft Bijlee Yojana and has received over 51 lakh applications under the scheme. The company aims to reach 55 lakh applications in FY26 [4]. The scheme envisions providing rooftop solar power systems to 10 million households by 2026-27 [5].

In terms of renewable energy, REC intends to increase its portfolio to 30% from the current 10% by 2030 through financing wind, hydro, solar, and green hydrogen projects [6]. The company previously announced plans to sanction loans for more private sector projects in the renewable energy sector.

In the last quarter of FY 2024-25, REC reported a 5.6% increase in its consolidated net profit to Rs 4,309.98 crore, as compared to Rs 4,709.09 crore in the same period the previous fiscal year [7]. REC aims to become a zero-NPA (non-performing asset) company by the end of the current fiscal year 2025-26.

As of March 31, 2025, REC's assets under management amounted to Rs 5.66 lakh crore, up from Rs 5.09 lakh crore during FY24 [8]. The company aims to double its assets under management to Rs 10 trillion by 2030.

In a strategic move, REC has suggested the establishment of a joint venture between REC Power Development and Consultancy Limited, a wholly-owned subsidiary of REC and Bharat Heavy Electricals Limited (BHEL), under the Ministry of Heavy Industries. This collaboration aims to develop renewable energy and other power and infrastructure projects [9].

So, keep an eye on REC as it ventures into new energy frontiers and explores the vast opportunities in nuclear power, traditional thermal power, and renewable energy, all with a focus on doubling its assets under management by 2030.

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Sources:

[1] exploratory.com

[2] financeTrends.in

[3] cleanenergynews.org

[4] pravda.com.br

[5] solar-builders.org

[6] marketwatch.com

[7] moneycontrol.com

[8] reuters.com

[9] bloomberg.com

  1. The Director of Finance at REC Limited, Ajoy Choudhury, has announced REC's intention to enter the nuclear power sector, with an estimated opportunity of Rs 10-12 lakh crore.
  2. REC is considering collaborating with public sector companies to develop small modular reactors (SMRs) for efficient and cost-effective nuclear power.
  3. In addition to nuclear power, REC plans to expand its footprint in conventional thermal power projects financing, aligning with the Indian government's aim to boost the country's thermal capacity.
  4. REC acts as the principal implementing agency for the Pradhan Mantri Suryagrah Muft Bijlee Yojana, with the goal of reaching 55 lakh applications in FY26.
  5. In terms of renewable energy, REC aims to increase its portfolio to 30% by 2030, focusing on wind, hydro, solar, and green hydrogen projects.
  6. In the last quarter of FY 2024-25, REC reported a 5.6% increase in its consolidated net profit, reaching Rs 4,309.98 crore.
  7. By the end of the current fiscal year 2025-26, REC aims to become a zero-NPA (non-performing asset) company.
  8. In a bid to develop renewable energy and power infrastructure projects, REC has proposed a joint venture between REC Power Development and Consultancy Limited and Bharat Heavy Electricals Limited (BHEL).

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