REC funds EV -Buses apart from Solar, Green hydrogen. Plans to fund Green Ammonia which has huge potential in overseas market apart from domestic demand.

REC has already funded 10,000 EV’s during Fy2024. They plan to fund 50,000 EV’s during next 2-3 years. There Is going to be huge demand from State Govt undertaking such as STU’s who are replacing existing and ailing Diesel bus fleet.

REC Ltd’s disbursal towards green hydrogen projects in FY24 stood at Rs 7997 crore from nil disbursements made in FY23.

The company’s funding in the solar energy space has more than doubled to Rs 20,956 crore in FY24 from Rs 9031 crore in FY23.

REC predicts that prices of green hydrogen which are close to USD 5-6 are likely to come down to USD 1 by 2026-27, on the same line as solar, which was costing Rs 16 per kWh, a few years back to current discovered prices of Rs 2.5 to 3 per Kwh with more players entering the space.

REC plans to support funding for producing green ammonia, which is in high demand in Western European countries such as Germany, the United Kingdom, and France.

Disclaimer : Invested from lower level for long term. I may be biased. it is not a buy or sell recommendation.
Please do your own assessment before investing. NBFC’s do carry risk of NPA and PSU,’s in particular are subject to frequent policy changes by Govt.