REC Limited, a non-banking financial company, has received approval from the Reserve Bank of India (RBI) to establish a subsidiary in Gujarat International Finance Tech-City (GIFT) in Gandhinagar, Gujarat. This move comes as REC aims to diversify its portfolio and explore new avenues for growth.
The proposed subsidiary in GIFT City will engage in various financial activities, including lending, investment, and other financial services. REC, known for providing long-term loans and financing products for infrastructure development in India, sees GIFT City as a promising hub for financial services.
Vivek Kumar Dewangan, CMD of REC Ltd, expressed confidence in the strategic move, stating that the GIFT City platform offers a conducive environment for international lending activities with world-class infrastructure. He believes that REC will leverage these advantages to establish a strong presence in the global market.
Furthermore, Dewangan highlighted that the entity in GIFT City will not only create new business opportunities for REC but also contribute significantly to the growth of India’s energy sector. This move aligns with REC’s mission of fostering growth in India’s power and infrastructure sector while expanding its global footprint.
GIFT City, a developing business district in Gujarat, is set to become India’s premier smart city, offering spaces for businesses to thrive. REC, a ‘Maharatna’ company under the Ministry of Power, Government of India, is registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).
Overall, REC’s expansion into GIFT City signifies a strategic move to capitalize on emerging opportunities in the financial services sector and contribute to the growth of India’s energy infrastructure.