Union power and new & renewable energy minister highlighted the need for India’s power sector to grow at 8.5% to support the country’s economic growth target of 7.5%. Speaking at the foundation stone laying ceremony for a new residential complex for REC Limited employees in Gurugram, the minister underscored the vital role of the power sector in national development.
The minister acknowledged REC Limited’s significant contributions to turning around the power sector and making it viable. “Earlier, in 2017, the power sector was in doldrums,” he said, referencing the challenges faced by the sector, including outstanding dues of more than Rs 1.4 lakh crore and indebtedness of most distribution companies (discoms). “You and I have turned it around, we have made the system viable,” he added.
Stressing the importance of maintaining this viability, he said, “If the system remains viable, investments will come.” He projected a robust demand for electricity, stating, “If the peak demand today is 243 GW, then the contract demand will be in excess of 340 GW.”
The minister highlighted the critical role of REC Limited and Power Finance Corporation (PFC) in supporting this growth. He mentioned the country’s substantial electricity capacity under construction, with 161 GW currently being built, expected to rise to 239 GW. He emphasized the continued need for a high level of construction activity in the power sector over the next two decades.
Addressing REC Limited’s new housing project, the minister reflected on the importance of providing quality living facilities to the organization’s staff. “As you are, so your organization will be,” he said, emphasizing the correlation between employee welfare and organizational success. He praised REC for its commitment to building a sustainable and thriving community.
“This Residential Complex stands as a testament to our commitment to our employees’ well-being,” remarked 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, attended by senior officers from the ministry of power and employees of REC, marks a milestone for REC Limited, a Maharatna CPSE established in 1969 under the Ministry of Power. REC Limited plays a crucial role in financing power infrastructure, recently diversifying into non-power sectors as well. The company boasts a loan book exceeding Rs 4.74 lakh crore.
