REC Ltd witnessed a year-on-year growth of nearly 19 per cent in its loan disbursements to the power T&D sector.
According to an investor presentation, REC disbursed Rs.83,106 crore in loan to the power T&D sector during the first nine months (9M: April to December) of FY25, up 18.8 per cent from the comparable level of Rs.69,951 crore in 9MFY24.
The lending performance summary during Q3 (October to December) and 9M (April to December) is tabulated below:
Highlights
- The power transmission sector witnessed a year-on-year decline, both in terms of sanctions and disbursements, during Q3FY25 and 9MFY25.
- The power distribution segment, whilst witnessing a decline in sanctions, saw a sharp growth in disbursements. In Q3FY25, loan sanctions to power distribution fell 34.1 per cent, and by 27.8 per cent in 9M25. However, disbursements were up sharply by 68.8 per cent in Q3FY25 and by 20.5 per cent in 9MFY25, with absolute levels of Rs.32,662 crore and Rs.78,679 crore, respectively.
- Loan disbursements to the power distribution sector, in turn, were buoyed by the Revolving Bills Payment Facility (RBPF) scheme. Under RBPF, REC disbursed Rs.59,561 crore in 9MFY25, which accounted for nearly 76 per cent of total disbursements towards power distribution.
- REC’s disbursements under RBPF in 9MFY25 have already surpassed the Rs.53,077 crore disbursed in the entire FY24.
- Towards financing capital expenditure of power distribution projects, REC disbursed Rs.6,689 crore in 9MFY25, slightly lower than Rs.6,880 crore in 9MFY24.
- Taken together, the power T&D segment saw loan disbursements worth Rs.33,172 crore in Q3FY25 (up 57.7 per cent) and Rs.83,106 crore in 9MFY25 (up 18.8 per cent).
- The power T&D space accounted for 57.1 per cent of REC’s total loan disbursements in 9MFY25, more or less maintaining the 9MFY24 metric. This was despite the 4.8 per cent in power transmission disbursements.
What is RBPF?
Under its Revolving Bills Payment Facility (RBPF) scheme, REC extends loans to discoms towards payment of power purchase dues and transmission charges of Central government PSU generators and transmission companies, private transmission service providers, independent power producers and renewable energy generators.
The entities eligible for assistance under RBPF include state-owned distribution companies, state-owned combined generation and distribution companies, companies buying power on behalf of discoms, and private discoms.
