REC Receives RBI Approval to Establish Subsidiary in GIFT City, Gujarat

GG News Bureau
New Delhi, 6th May. REC Limited, a prominent Maharatna Central Public Sector Enterprise under the Ministry of Power and a leading Non-Banking Financial Company (NBFC), has obtained a crucial ‘No Objection Certificate’ from the Reserve Bank of India (RBI) on May 3, 2024, signaling the green light to establish a wholly owned subsidiary in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar, Gujarat.

This significant milestone marks REC’s strategic move to extend its operations into GIFT City, recognized as a burgeoning hub for financial services within India. With an eye on diversifying its portfolio and exploring fresh avenues for growth, REC aims to leverage the burgeoning opportunities offered by GIFT City to expand its financial activities.

The proposed subsidiary will actively engage in a spectrum of financial services as a finance company within GIFT City, encompassing lending, investments, and various other financial services.

Commenting on this pivotal development, Shri Vivek Kumar Dewangan, Chairman and Managing Director of REC Limited, expressed confidence in the potential of GIFT City as a platform for international lending activities, bolstered by its world-class infrastructure. He emphasized REC’s commitment to harnessing these advantages to carve a niche in the global market.

Moreover, Dewangan highlighted the anticipated contributions of REC’s presence in GIFT City to the growth of India’s energy sector. He underscored the strategic move as not only opening new avenues for REC but also significantly contributing to the advancement of the nation’s power and infrastructure sectors.

With this strategic foray into GIFT City, REC endeavors to propel its mission of fostering growth in India’s power and infrastructure sector while simultaneously expanding its footprint on the global stage.