New Delhi, Sep 21 (IANS): REC Ltd has been accorded the status of a 'Maharatna' central public sector enterprise (CPSE), thus giving it greater operational and financial autonomy.

An order to this effect was issued by the Department of Public Enterprises, under the Ministry of Finance, on Wednesday.

Incorporated in 1969, REC is a non-banking finance company (NBFC), focussing on power sector financing and development across India. It comes under the aegis of Power Ministry.

The granting of 'Maharatna' status to REC will impart enhanced powers to the company's board while taking financial decisions, a company statement said.

The board of a 'Maharatna' CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the CPSE concerned, limited to Rs 5,000 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.

Chairman and Managing Director of REC, Vivek Kumar Dewangan said that REC achieved this feat owing to its adaptability, resilience and consistent performance even during the global Covid-19 pandemic.

"In FY22, REC made its highest ever net profit of Rs 10,046 crore and reached a net worth of Rs 50,986 crore, owing to its cost-effective resource management and strong financial policies," he said.

REC (earlier known as Rural Electrification Corporation) has contributed towards achieving village and household electrification in the country.

Some key Maharatna CPSEs in India are ONGC, NTPC, Indian Oil Corporation and BHEL, among others.