REC Limited Gets ‘Excellent’ MoU Rating for Third Consecutive Year

Convener News Desk

New Delhi, Jan 09: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received an ‘Excellent’ rating for the Memorandum of Understanding (MoU) for the financial year 2024–25, marking the third consecutive year the power sector financier has achieved the top performance grade.

The MoU, signed with its holding company Power Finance Corporation Limited (PFC), was evaluated by the Department of Public Enterprises (DPE), Ministry of Finance, in accordance with prescribed government guidelines, officials said.

In addition to the MoU achievement, REC has secured the fifth position in net profit parameters among all Central Public Sector Enterprises (CPSEs), as per the Public Enterprise Survey Report for FY 2024–25 released by the DPE.

The MoU framework is a performance evaluation mechanism instituted by the Government of India to assess CPSEs on their effectiveness in achieving core objectives. It focuses on outcome-based economic performance rather than effort-based assessment, aligning enterprise goals with government priorities, sectoral benchmarks and shareholder interests.

 The performance parameters are finalised in consultation with the administrative ministry, in this case the Ministry of Power.

According to officials, REC’s evaluation reflected its strong financial position, high asset quality and sustained operational efficiency.

 Key contributors to the performance included consistent financial results, operational discipline, market competitiveness and adherence to ethical corporate governance standards.

The Public Enterprise Survey, conducted annually by the DPE, captures the financial performance of CPSEs across the country. In the FY 2024–25 survey, REC recorded strong performance across multiple financial indicators, reinforcing its position among the top-performing public sector enterprises.

REC Limited, a leading non-banking financial company in the power sector, continues to play a significant role in financing India’s power infrastructure, supporting capacity addition, transmission development and sustainable growth in the energy sector.