This year, REC Ltd, earlier known as Rural Electrification Corporation, aims to resolve approximately worth Rs 7,000 crore of its stressed assets. This accounts for approximately 40-45 percent of its total stressed assets. In the following year, the company intends to achieve a complete cleanup of its balance sheet and is committed to avoiding any further additions of non-performing assets (NPAs).

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Sharing the company's robust strategy to address its stressed assets in the upcoming fiscal year in an interview with CNBC-TV18, Ajoy Choudhury, Director-Finance of REC, said that this initiative, which aims to resolve stressed assets worth Rs 7,000 crore, demonstrates the company's commitment to strengthening its financial position. It will in turn ensure the health of its balance sheet, he said.

Ajoy Choudhury expressed confidence in REC's ability to manage this significant portfolio of stressed assets. He emphasised that the company's efforts are focused on resolving these assets efficiently and effectively, with a clear goal of minimising financial strain and improving overall performance.

“This year we hope to resolve around Rs 7,000 crore — around 40-45 percent of our stressed assets — and once we do that, the next year we want to completely clean our balance sheet and we certainly do not want to add any more NPAs,” Choudhury said.

The Rs 7,000 crore target for resolving stressed assets in FY24 is a substantial undertaking for REC, representing approximately 40-45 percent of their stressed assets portfolio.

By resolving a substantial portion of stressed assets in FY24 and aligning the organisation's efforts toward a clean balance sheet, REC is poised to enhance its financial resilience and continue supporting India's power and infrastructure development.

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(Edited by : C H Unnikrishnan)