REC Limited has been appointed as the central agency for the Pradhan Mantri Suryodaya Yojana (PMSY) initiative aimed at deploying rooftop solar systems in the residential sector. The initiative, announced by the Indian Prime Minister earlier in January 2024, aims to install rooftop solar panels in 10 million households. Under this significant effort to promote green energy, the public sector undertaking (PSU) is set to provide loans amounting to Rs 1.2 trillion for the rooftop solar mission. The board of REC Limited has approved a credit line of around Rs 150 million for central public sector undertakings (CPSEs) that will serve as renewable energy service providers for the program’s execution.
To put the plan into action, the distribution of states and union territories has been organised among eight CPSEs operating under the Ministry of Power. These entities consist of NTPC, NHPC, Energy Efficiency Services Limited, PowerGrid, Solar Energy Corporation of India, THDC, SJVN, and North Eastern Electric Power Corporation Limited. Additionally, these CPSEs will actively engage in the installation of rooftop solar panels using the renewable energy service company model.
Recently, in January 2024, REC Limited was designated as the main executor for the rooftop solar initiative by the Ministry of New and Renewable Energy.
In the same month, REC Limited declared a successful fundraising of approximately Rs 35 billion through the green bonds’ issuance.
In December 2023, in accordance with the government’s Revamped Distribution Sector Scheme, REC Limited and KfW inked a $215 million financing agreement to improve the distribution infrastructure of distribution companies.
