V.K. Dewangan Bids Farewell as CMD REC, Leaving a Legacy of Excellence
Mar 23rd, 2025 11:51 am | By ThenewsmanofIndia.com | Category: SPECIAL NEWS COVERAGE
(THE NEWSMAN OF INDIA.COM) by Abul Hasan: Vivek Kumar Dewangan, a 1993-batch IAS officer, has had a distinguished career in public service, with a deep understanding of governance, policy formulation, and public sector management. His tenure as Chairman and Managing Director (CMD) of REC Limited saw the company achieving notable financial and operational milestones, strengthening its position in India’s power sector.
Having assumed leadership on 17th May 2022, Dewangan’s leadership over the past two years and nine months has left an indelible mark on the organization, transforming it into one of India’s most formidable players in the energy and infrastructure financing landscape.
In April 2023, the Ministry of Power confirmed Dewangan for a central deputation tenure of seven years, which concluded on March 20, 2025. During this period, his leadership was marked by a focus on financial stability, risk management, and strategic expansion, contributing to REC’s impressive performance.
Under Dewangan’s leadership, REC Ltd. experienced substantial growth across key financial and operational parameters.
Financial Performance
– Asset Under Management (AUM): Increased from ₹3.85 lakh crore (March 2022) to ₹5.66 lakh crore (December 2024), reflecting a 46.8% growth.
– Net Worth: Rose by 50% from ₹50,986 crore to ₹76,502 crore, signifying stronger financial health.
– Market Capitalization: Saw a sharp increase of 442.5%, growing from ₹24,301 crore to ₹1,31,844 crore, demonstrating enhanced investor confidence.
– Net Profit: Increased by 42.8%, reaching ₹14,346 crore by December 2024.
– Dividend per Share: Grew by 55.1%, rising from ₹11.48 to ₹17.8, benefiting shareholders.
Risk Management & Financial Stability, A major focus during Dewangan’s tenure was improving REC’s financial sustainability. The company significantly reduced its Non-Performing Assets (NPAs):
– Gross NPAs declined from 4.45% to 1.95% (a 56.2% reduction).
– Net NPAs dropped from 1.45% to 0.74% (a 48.9% decline).
These improvements underscore the company’s stronger financial discipline and risk management strategies.
Earnings and Shareholder Value: REC’s earnings per share (EPS) saw a 52.4% increase, reaching ₹58.11, while the book value per share grew from ₹193.63 to ₹290.53, making REC a more attractive investment.
Key Initiatives and Achievements: Dewangan’s contributions extended beyond financial growth, as he played a role in shaping REC into a more agile and socially responsible entity.
Maharatna Status : In September 2022, REC Limited was granted Maharatna status, a recognition that enhanced the company’s operational autonomy. This status, achieved under Dewangan’s leadership, positioned REC for greater strategic flexibility in its decision-making.
Revamped Distribution Sector Scheme (RDSS)
As the nodal agency for the Ministry of Power’s Revamped Distribution Sector Scheme (RDSS), REC facilitated improvements in the operational efficiency and financial sustainability of power distribution companies (DISCOMs), a critical challenge in India’s energy sector.
Renewable Energy and Electrification Efforts: Under Dewangan, REC expanded its focus on renewable energy financing, aligning with India’s clean energy goals. The company supported several renewable energy projects and was instrumental in implementing the PM Surya Ghar Muft Bijli Yojana (PMSGMBY). This initiative, aimed at promoting rooftop solar installations, surpassed 8.7 lakh installations within 11 months of launch.
Awards and Recognition : REC Ltd. received multiple awards during Dewangan’s leadership, reflecting its progress in financial performance, governance, and sustainability. Notable recognitions include:
– Most Sustainable Maharatna Leader Award at the World Sustainability Congress (2023).
– Golden Peacock Award 2023 for Excellence in Risk Management.
– Dun & Bradstreet Best Central PSU under Financial Services.
– Best Employer in Diversity & Inclusion by ASSOCHAM (2023).
A Legacy of Growth and Stability: Dewangan’s tenure at REC Ltd. was marked by a mix of financial prudence, strategic growth, and an increased focus on sustainability. While his leadership saw remarkable expansion in the company’s financial metrics, it also underscored REC’s evolving role in India’s energy transition. As he concludes his tenure, REC stands as a stronger, more resilient entity, ready to navigate future challenges in the power sector.
His leadership has left an imprint on the company’s trajectory, and the foundation laid during his term will continue to influence REC’s role in India’s infrastructure and energy sectors.
Disclaimer:This article has been written in good faith, based on information available in the public domain
