New Delhi: State-run non-banking finance company REC Ltd is preparing to venture into the nuclear power sector over the next two to three years. The company plans to finance public sector enterprises undertaking nuclear power projects, according to Vijay Kumar Singh, Director Projects at REC.

"Nuclear is a promising new opportunity for us. We estimate it represents a Rs 10 to 12 lakh crore lending space. We are currently evaluating the prospects and could see developments within two to three years," Singh said. He added that REC’s focus will be on supporting small modular reactors SMRs, which are considered a scalable and safer form of nuclear energy.

Conventional Power and Rooftop Solar Also in Focus

In parallel, REC is also expanding its focus on conventional thermal power financing. With the government raising its thermal capacity target to 95 gigawatts GW by 2031-32 from the earlier 80 GW, REC is aligning its lending strategy to support this growth in response to the country's increasing electricity demand.

Additionally, REC is serving as the nodal agency for the PM Suryaghar Muft Bijlee Yojana, under which it has received 51 lakh applications so far. The scheme aims to equip 1 crore households with rooftop solar power systems by 2026-27. REC targets to increase the application count to 55 lakh by FY26.

Renewable Energy Lending to See Major Boost

REC also plans a significant scale-up of its renewable energy portfolio. The company aims to grow the share of lending to clean energy sectors—including solar, wind, hydro, and green hydrogen—from the current 10 percent to 30 percent by 2030. It also intends to expand its exposure to private sector projects.

Strong Financial Performance and Growth Outlook

REC posted a 5.6 percent rise in its consolidated net profit for the fourth quarter of FY 2024-25, reaching Rs 4309.98 crore, compared to Rs 4709.09 crore in the same quarter last fiscal. The company has set a goal to become a net-zero NPA non-performing asset enterprise by the end of FY 2025-26.

As of March 31, 2025, the company’s assets under management AUM stood at Rs 5.66 lakh crore, up from Rs 5.09 lakh crore the previous year. REC has set an ambitious target to double its AUM to Rs 10 trillion by 2030.

New Joint Venture with BHEL

The Board of Directors has approved a final dividend of Rs 2.60 per equity share with a face value of Rs 10 each for FY 2024-25. Additionally, the Board sanctioned the formation of a joint venture between REC Power Development and Consultancy Limited a wholly owned REC subsidiary and Bharat Heavy Electricals Limited BHEL. This 50:50 joint venture will focus on renewable energy, power, and infrastructure development projects.