REC Receives RBI Approval to Establish Subsidiary in GIFT City

In a significant development, REC Ltd., under the Ministry of Power, has obtained approval from the Reserve Bank of India (RBI) to establish a subsidiary in Gujarat International Finance Tech-City (GIFT), Gandhinagar. This move reflects REC’s strategic initiative to diversify its portfolio and tap into new avenues for growth within the burgeoning hub of financial services in India.

Approval from RBI

REC Limited has received a ‘No Objection Certificate’ from the RBI for setting up a wholly owned subsidiary in GIFT City, Gujarat, dated May 3, 2024. This marks a crucial milestone for REC as it expands its operations into the International Financial Services Centre (IFSC) in GIFT City.

Expansion into GIFT City

The decision to venture into GIFT City underscores REC’s commitment to exploring opportunities in the global market. The proposed subsidiary will engage in various financial activities, including lending, investment, and other financial services, leveraging the conducive environment and world-class infrastructure offered by GIFT City.

Strategic Vision

CMD of REC Limited, Vivek Kumar Dewangan, expressed confidence in the strategic move, citing the favorable environment for international lending activities in GIFT City. He highlighted REC’s intent to carve a niche in the global market while contributing significantly to the growth of the country’s energy sector.

Outlook and Impact

The establishment of a subsidiary in GIFT City not only presents new business avenues for REC but also aligns with its mission to foster growth in India’s power and infrastructure sector. This strategic move is expected to further enhance REC’s footprint on the global stage, driving its vision of sustainable development and financial excellence.