REC has received approval from the Central Board of Direct Taxes (CBDT) to issue Zero Coupon Bonds (ZCBs) worth Rs 50 billion. The Maharatna PSU under the Ministry of Power was notified via CBDT Notification No. 52/2025 dated 30 May 2025. 

The approved issuance includes five lakh ZCBs with a tenure of ten years and six months. These bonds, issued at a deep discount and redeemable at face value, offer tax benefits under the Income-tax Act, 1961—making them attractive to a wide investor base. 

REC’s earlier Rs 50 billion ZCB issuance in FY 2024–25 was oversubscribed nearly seven times. It was priced at a yield of 6.25 per cent, roughly 100 basis points below market rates, setting a new industry benchmark. 

The success helped REC diversify its investor pool while reducing borrowing costs. With the latest approval, REC continues its strategy of leveraging innovative funding tools to meet India’s energy infrastructure needs.