The move is seen as a strategic step for REC to diversify its portfolio and explore new avenues for growth, particularly in the global market. The GIFT City platform is known for its conducive environment for international financial activities and world-class infrastructure, which REC aims to leverage for expanding its business operations.
This development is anticipated to not only present new business opportunities for REC but also contribute significantly to the growth of India's energy sector².
The establishment of a subsidiary in GIFT City is expected to bring several benefits to REC Ltd:
1. Access to International Capital Markets: The subsidiary will enable REC to tap into international capital markets more efficiently, providing access to diverse sources of funding, including foreign investments.
2. Diversification of Financial Activities: It will engage in a range of financial activities such as lending, investment, and other financial services within the International Financial Services Centre (IFSC) at GIFT City.
3. Global Market Expansion: The conducive environment and world-class infrastructure of GIFT City will allow REC to establish a presence in the global market and carve a niche for itself.
4. Contribution to India's Energy Sector: The new business opportunities presented by the subsidiary are anticipated to contribute significantly to the growth of India's energy sector.
5. Strategic Growth: This move aligns with REC's strategy of diversifying its portfolio and exploring new avenues for growth, furthering its mission to foster growth in India's power and infrastructure sector.
Overall, the subsidiary in GIFT City is expected to be a strategic asset for REC, aiding in its mission while also contributing to the broader energy sector's development.
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