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					</table><p><a href="https://recindia.nic.in/home" target="_blank" rel="noopener">REC Limited</a>, a public infrastructure finance company under the <a href="https://powermin.gov.in/" target="_blank" rel="noopener">Ministry of Power</a>, is being considered to be given the status of a development financial institution (DFI) to steer global climate funding and strengthen net-zero investment in India.</p>
<p>REC has been classified as a non-banking financial company (NBFC) so far. NBFCs generally provide financial services similar to banks. But as a development financial institution, it will be supported by the Government of India to provide development or project finance, emphasizing long-term financing rather than collateral-based financing.</p>
<p>Recently, REC Chairman and Managing Director Vivek Kumar Dewangan said India would require an estimated $3.5 trillion for a net-zero economy by 2050 and $10 trillion by 2070. A large part of the investments would be required in the country’s power sector. REC’s vision is to diversify into energy transition and future technology funding.</p>
<p>As a development financing institution, REC will analyze end-to-end capital flow requirements and bridge the gap through large-scale fund mobilization and monitoring.</p>
<p>With strong domain expertise and appraisal capabilities, REC is strategically placed to discharge the duties and responsibilities of a DFI. The company’s business operations include financing projects in the complete power sector value chain for various projects, including generation, transmission, distribution, and renewable energy.</p>
<p>REC, a non-banking financial company, provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives, and private sector utilities.</p>
<p>Last October, REC Limited <a href="https://mercomindia.com/rec-75-million-sofr-smbc/" target="_blank" rel="noopener">raised</a> its first ever five-year secured overnight financing rate- linked syndicated term loan of $75 million. REC also entered into an interest rate swap referencing SOFR to hedge the interest rate risk on this facility. The company said that the proceeds from this facility would be utilized to fund infrastructure projects in the power sector.</p>
<p>REC has also <a href="https://mercomindia.com/rec-1-175-billion-low-cost-financing-power-projects/" target="_blank" rel="noopener">raised</a> $1.175 billion from a consortium of seven banks to fund infrastructure power projects permitted by the Reserve Bank of India. The fund raised is the single largest syndicated loan in the international bank loan market for any Indian NBFC.</p>
<p>REC <a href="https://mercomindia.com/rec-limited-posts-annual-profit-%e2%82%b9100-billion-highest-ever/" target="_blank" rel="noopener">reported</a> a total income of ₹392.30 billion (~$5.05 billion) for the financial year (FY) 2022, an 11% increase compared to ₹354.10 billion (~$4.56 billion) in FY 2021. The company’s net profit in FY22 recorded a 20% YoY growth to ₹100.46 billion (~$1.3 billion), the highest ever for the company.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/gourav-mishra/" class="vcard author" rel="author"><span class="fn">Gourav Mishra</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="50" /></p>
<p><strong style="text-decoration: underline">Gourav,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav.</a></p>
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<div class="authorboxn"><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/WhatsApp-Image-2022-04-06-at-6.37.25-PM-1-1.jpeg" width="89" height="102" /><a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">Gourav</a> is a staff reporter with Mercom India with over six years of experience in various roles with NewsX, The New Indian Express, IBTimes India, and U.S., Republic, and Analytics India Magazine. Gourav has a Master&#8217;s in journalism from Jain University, Bengaluru. <a href="https://mercomindia.com/author/gourav-mishra/" target="_blank" rel="noopener">More articles from Gourav Mishra</a></div>
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REC to Drive India’s Transition to Net Zero as a Development Financial Institution

<p>Microsoft founder Bill Gates, through his climate investment fund, <a href="https://www.breakthroughenergy.org/" target="_blank" rel="noopener">Breakthrough Energy</a>, will infuse $1.5 billion into a joint venture with the Department of Energy (<a href="https://www.energy.gov/" target="_blank" rel="noopener">DOE</a>) to accelerate the development of clean energy technologies, according to a CNN report.</p>
<p>The fund is contingent on the $1.2 trillion infrastructure bill, which still needs to be passed by the U.S. House of Representatives.</p>
<p>Gates said, &#8220;If the Infrastructure Investment and Jobs Act becomes law, this collaboration will not only send us on a more durable path to net-zero but will create both immediate and long-term jobs in communities across the country.&#8221;</p>
<p>Breakthrough Energy&#8217;s Catalyst project would invest the amount over three years in public-private partnerships to boost technology demonstrations for sustainable aviation fuel, green hydrogen, direct air capture, and energy storage.</p>
<p>Breakthrough aims to utilize the investment to accumulate $15 billion to bring emerging technologies to the market. The Breakthrough Energy Catalyst program, which unites private and public funding for decarbonization technologies, will co-fund demonstrations with DOE and support projects through the Loan Programs Office.</p>
<p>Breakthrough Energy Catalyst will help fast track include sustainable aviation fuel and green hydrogen, providing power without fossil fuels. Other projects include direct air capture, which would capture carbon dioxide straight from the atmosphere, and long-duration energy storage.</p>
<p>&#8220;Avoiding a climate disaster will require a new industrial revolution. We need to make the technologies and products that don&#8217;t cause emissions as cheap as those that do, reducing what I call Green Premiums, so the whole world can afford them and reach our climate goals,&#8221; Gates said.</p>
<p>Gates added that a public-private partnership would speed up the deployment of these technologies.</p>
<p>Recently, Gates, Fortistar, Reliance New Energy Solar Limited, and a few other investors had <a href="https://mercomindia.com/reliance-invest-energy-storage-ambri/">invested</a> $144 million in Ambri, a U.S.-based energy storage company.</p>
<p>Mercom had earlier reported the <a href="https://mercomindia.com/bill-gates-launches-breakthrough-energy-catalyst/" target="_blank" rel="noopener">launch</a> of the Breakthrough Energy Catalyst program to boost cleantech funding and innovation. Bill Gates has teamed with a group of philanthropists, companies, and governments for this program. The program plans to promote investments in clean technologies that are critical for the energy transition to eliminate greenhouse gas emissions by 2050. The program also focuses on accelerating innovation in clean energy projects to ensure the costs decline.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/arjun-joshi/" class="vcard author" rel="author"><span class="fn">Arjun Joshi</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="50" /></p>
<p><strong style="text-decoration: underline">Arjun Joshi,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/04/Arjun-Joshi-1.png" width="86" height="102" /><a href="https://mercomindia.com/author/arjun-joshi/" target="_blank" rel="noopener"><strong style="color: #00b451">Arjun Joshi</strong> </a>is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. <a href="https://mercomindia.com/author/arjun-joshi" target="_blank" rel="noopener">More articles from Arjun Joshi.</a></p>
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Bill Gates Pledges $1.5 Billion to Develop Clean Energy Technologies

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