State-owned REC Ltd on Thursday said the government has given it the status of a 'Maharatna' central public sector enterprise (CPSE), thus giving the company greater operational and financial autonomy.

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REC is the 12th company to secure Maharatna status.

"An order to this effect was issued today by the department of public enterprises, under the ministry of finance," the company said in the statement on September 22.

Incorporated in 1969, REC is an NBFC focusing on power sector financing and development across India. The grant of Maharatna status to REC will give the company's board greater powers in making financial decisions.

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The board of a Maharatna CPSE can make equity investments for financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 percent of the net worth of the concerned CPSE, limited to Rs 75,000 crore in one project.

The board can also structure and implement schemes relating to personnel and human resource management and training. With this, REC can also enter into technology joint ventures or other strategic alliances among others.

Vivek Kumar Dewangan, CMD, said REC achieved this feat owing to its adaptability, resilience, and consistent performance even during the global COVID-19 pandemic.

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"In FY22, REC made its highest ever net profit of Rs 710,046 crore and reached a net worth of Rs 750,986 crore, owing to its cost-effective resource management and strong financial policies," he added.

To be eligible for the grant of the Maharatna status, the company should have an average turnover of over Rs 25,000 crore, an average annual net worth of more than Rs 15,000 crore, and an average annual net profit of over Rs 5,000 crore during the last three years.

The Maharatna scheme is aimed at giving enhanced powers to the boards of identified large-sized CPSEs so as to facilitate the expansion of their operations, both in domestic as well as global markets.

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Among others, the Maharatna status allows companies to "incur capital expenditure on purchase of new items or for replacement, without any monetary ceiling." Also, these CPSEs should not depend upon budgetary support or government guarantees.

(Edited by : Shoma Bhattacharjee)