Power and New & Renewable Energy Minister R. K. Singh Lays Foundation Stone for REC Employees’ Residential Complex in Gurugram

REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, is coming up with a residential complex for its employees, situated in Gurugram. The Union Minister for Power and New & Renewable Energy Shri R. K. Singh laid the foundation stone for the Residential Complex in Gurugram today, December 22, 2023.

Addressing the employees of REC Limited and other officers and staff of the Ministry of Power and associated organizations, the Minister highlighted the important role REC plays in the growth of the power sector and of the nation, stating that the organization was instrumental in turning around the power sector and in making it viable. “Earlier, in 2017, the power sector was in doldrums. Outstanding dues of gencos were more than Rs. 1.4 lakh crores. Most discoms were heavily indebted and did not have money even for buying power or for maintaining the systems. You and I have turned it around, we have made the system viable.”

The Minister said that viability of the system is an essential requirement for growth of the sector. “If we had not made the system viable, it would not have been possible to grow at 7.5%, since we cannot grow without power and no investment would have come into the sector given the condition it was in.”

Shri Singh said that having reached a certain level of viability, we need to further increase and improve it. “If the system remains viable, investments will come. Investments are required since if the economy is to grow at 7.5%, our power sector needs to grow at 8.5%. Every industry wants to have resources which are slightly in excess of current demand. If the peak demand today is 243 GW, then the contract demand will be in excess of 340 GW.”

The Power Minister said that the contract demand will grow faster than the country’s economy and that so the power capacity has to grow at that rate, for which REC and PFC will have to make an important contribution. “REC and PFC are key to helping this growth. Can you imagine a power system as big as ours which grew at 9% last year and is still growing at same rate? In the present year, the rate of growth in terms of peak demand is almost around 10.5% – 11% and it will continue at this rate. Huge amount of funds will be necessary for capacity addition, part of which REC and PFC have to provide.”

The Power and New & Renewable Energy Minister said that the nation has 161 GW of electricity capacity under construction which will go up to 239 GW and that we will have 100 GW of capacity under construction consistently for the next two decades, for which REC and PFC will have to mobilize funds. “We have around 27,000 MW of thermal capacity under construction. We are increasing that to 80,000 MW. The funding for this will have to come. Right now, the renewable energy capacity under construction is 114 GW and that is how it will continue; the capacity under construction will remain around 100 GW for the next 2 – 3 decades. Now, the hydro capacity under construction is around 18 GW and we are going to start another 20 GW of hydro. So, combining hydro, thermal and renewable, around 240 GW of capacity is going to be under construction. That is the size of the investment which is happening and that will continue.” Shri Singh added that REC has to ensure that it lends responsibly, ensuring that prudential norms are in place.

Speaking of the residential complex, the Minister said that this day is a milestone in the growth of REC Limited. Highlighting the importance of the Complex, the Minister said that the lifeblood of any organization comprises its officers and staff; it is they who earn profits and make the organization grow. “As you are, so your organization will be. If you are good and bright, the organization will grow. For the staff to stay motivated, we need to provide facilities such as place of residence, health and education of children so that officers and staff need not worry about these and focus on giving their best to the organization. This is an essential part of motivating you and of making the organization grow.”

Shri Singh added that this endeavor to provide dedicated housing for REC Limited employees reflects the progressive approach towards employee welfare. “I would like to commend REC for not only envisioning a township but for envisioning a sustainable and responsible community. As this project progresses, I encourage the integration of eco-friendly practices, energy efficient technologies, and measures that promote environmental stewardship.”

“This Residential Complex stands as a testament to our commitment to our employees’ well-being,” remarked Shri Vivek Kumar Dewangan, CMD REC, highlighting the importance of fostering a supportive and nurturing community for its workforce. He further added, “The decision to invest in a township project goes beyond the realm of business, it is a commitment to building a sustainable and thriving community. As we witness the symbolic laying of this foundation stone, we are witnessing the birth of a vision that will shape the lives of many for generations to come.”

The event was attended by senior officers from Ministry of Power and employees of REC.

REC Limited, a Maharatna CPSE established in 1969, under Ministry of Power, provides long term loans and other finance products for Power-Infrastructure sector comprising of Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Green Hydrogen etc. More recently REC has also diversified into the Non-Power Infrastructure sector comprising of Roads & Expressways, Metro Rail, Airports, IT Communication, Social & Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.  The loan book of REC exceeds Rs 4.74 Lakh Crore.