REC gets approval to set up its subsidiary in GIFT City
Recently, REC Ltd, a Maharatna Central Public Sector Enterprise (CPSU) and leading NBFC under the Ministry of Power, has been approved by the Reserve Bank of India (RBI) for setting up International Financial Services Center (IFSC) – Gujarat International Finance Tech City (“GIFT”) at Gandhinagar, Gujarat. “) Approval has been granted to set up a wholly owned subsidiary in the City.
REC unit in GIFT City
- This proposed subsidiary will be engaged in a range of financial activities including lending, investment and other financial services as a financial company under GIFT.
- This unit located at GIFT City will present new business opportunities for REC, and will also contribute significantly to the development of the country’s energy sector.
- The proposed subsidiary will boost India’s power and infrastructure sector growth.
International Financial Services Centre – IFSC
- A special economic zone where tax concessions and other privileges are provided to foreign financial services firms.
- The main objective of IFSC is to promote financial services activities in India and establish the country as a global financial hub.
- Two IFSCs have been established in India:
1. Gujarat International Financial Services Center (GIFT City), Gandhinagar:
- It is the world’s first IFSC developed with integrated infrastructure.
- Activities like banking, insurance, reinsurance, fund management and financial research are conducted here.
2. IFSC at Indira Gandhi International Airport, Chennai:
- This is the second IFSC in India established by the Government of Tamil Nadu.
- The focus here is mainly on financial backoffice, blockchain technology and fintech companies.
Gujarat International Finance Tech City (GIFT City)
- It is India’s first International Financial Services Center (IFSC).
- GIFT City was established in 2011 by the Government of Gujarat. It is the world’s first IFSC with integrated infrastructure for financial services activities.
- Activities like banking, foreign exchange trading, insurance, reinsurance, fund management, financial research and financial technology are conducted here.
- GIFT City aims to establish India as a global financial center and attract financial services activities to the country.
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