Pradhan Mantri Suryoday Yojana: REC Ltd to Spearhead Rooftop Solar Mission with Rs 1.2 Lakh Crore Funding – EQ
In Short : REC Ltd is set to lead the Pradhan Mantri Suryoday Yojana, a rooftop solar mission, with a significant funding of Rs 1.2 lakh crore. This initiative underscores a major commitment towards promoting solar energy adoption and advancing India’s renewable energy goals.
In Detail : REC Ltd, appointed as the nodal agency, will lend Rs 1,20,000 crore for the Pradhan Mantri Suryoday Yojana. Aimed at installing rooftop solar panels in one crore households within a year.
In a significant development, REC Ltd, a Maharatna power finance company, has been designated as the nodal agency for the ambitious Pradhan Mantri Suryoday Yojana. This initiative, announced by Prime Minister Narendra Modi on January 22, aims to install rooftop solar panels in one crore households. REC Ltd, under the leadership of CMD Vivek Kumar Dewangan, is set to lend up to Rs 1,20,000 crore for this massive undertaking.
Pradhan Mantri Suryoday Yojana: Key Points
- Target and Timeline: The scheme sets an ambitious target of installing rooftop solar in one crore households within a year, contributing to the larger goal of achieving 40 GW of rooftop solar installations by 2026.
- Nodal Agency Role: REC has been designated by the Ministry of New and Renewable Energy (MNRE) as the overall program implementation agency for the rooftop solar scheme, showcasing the company’s pivotal role in driving the initiative.
- Central Public Sector Enterprises Involvement: Eight central public sector undertakings (CPSEs), including NTPC, NHPC, and PowerGrid, will actively participate in rooftop solar installation under the RESCO model, receiving a Line of Credit from REC.
- Challenges and Commitment: Achieving the ambitious target will require coordination with multiple stakeholders, but REC expresses confidence in meeting the set objectives.
Financial Outlook: REC Ltd aims to increase its renewable energy loan portfolio to Rs 300,000 crore by 2030, with a current sanctioned amount of about Rs 125,000 crore.
In the quarter ending December 2023, REC Ltd reported a net profit of Rs 3,269.3 crore, reflecting a 13.6% increase from the previous year. The company remains steadfast in its commitment to advancing renewable energy initiatives.
