REC gets ‘Maharatna’ company status

Current Affairs

  •  Power sector focussed non-banking finance company (NBFC) REC Ltd. has been accorded the status of a ‘Maharatna’ Central Public Sector Enterprise, thus providing it with greater operational and financial autonomy.
  • An order to this effect was issued by the Department of Public Enterprises, under the Ministry of Finance, on September 21, 2022.
  • The grant of ‘Maharatna’ status to REC will impart enhanced powers to the company’s Board while taking financial decisions. The Board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the Net Worth of the concerned CPSE, limited to ₹5,000 crores in one project.
  • The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training. With this, REC can also enter into technology Joint Ventures or other strategic alliances among others.

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