The Department of Public Enterprises (DPE) has finalised ambitious targets for REC Ltd in the ongoing financial year. The revenue target for FY2021 has been set at Rs 350 billion, up by 17.5 per cent from the previous fiscal’s achievement.
The operating profit margin target has been set at 28 per cent as against 23.23 per cent achieved in the previous year. The target for parameter profit after tax (PAT) as a percentage of average net worth has been set at 17 per cent as against 14.05 per cent achieved in the previous year.
Several other performance-related parameters and non-financial parameters including parameters relating to the Government of India’s ambitious program of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) have also been agreed to. The MoU was signed by Sanjeev Kumar Gupta, Chairman & Managing Director, REC Ltd and Ravinder Singh Dhillon, Chairman & Managing Director, PFC Ltd.
REC is confident to meet these targets despite the ongoing COVID-19 pandemic. A major boost is expected from the Aatmanirbhar Bharat Abhiyan or the self-reliant India programme for state utilities, whereby REC is expected to provide Rs 450 billion of loan assistance within this year and also the thrust to financing large renewable energy projects, where sanctions during the first quarter itself have surpassed the assistance provided in the previous year.
Further, during the first quarter of FY 2020-21, REC has achieved an all-time high profit of Rs 18.39 billion for any quarter. Revenue from operations achieved for the quarter was Rs 84.21 billion, which is indicative of the achievement of set targets by year-end. The MoU has been a standard performance measure for all central public sector enterprises (CPSEs) and REC has been delivering exemplary performances for the last several years.