Rural Electrification Corporation(REC) Source: http://recindia.nic.in

Incorporated in 1969 under the Companies Act, REC commenced its operations for financing rural electrification in india. REC's mandate evolved further in line with the development priorities of the Government and today it is a strategic player in financing of entire Power Infrastructure space which includes financing for generation, transmission, distribution and rural electrification projects, across the country without any limit. Out of every 10 pumpsets in the country, 6 have been energized under the schemes financed by REC. REC continues to play an integral role in implementing the rural electrification strategy of the Government of India through implementation of the Rajeev Gandhi Gramin Vidyutikaran Yojana (RGGVY), an ambitious scheme launched by the Gol launched in 2005. REC is appointed to act as the nodal agency for the objective.

REC became a public financial institution in 1992 and a Non Banking Finance Company (NBFC) in 1998. The Govt. of India upgraded REC as Schedule A Enterprise and granted Mini Ratna grade-1 status in year 2002.

Today, REC is one of the leading Public Financial Institutions operating in Power Infrastructure space. The financial products primarily include long term loans, debt refinancing short term and bridge loans. REC's list of clients comprises of public sector power utilities as well as private sector borrowers.

REC through its two subsidiaries- REC PDCL and REC TPCL also provides Third party monitoring, Consultancy and Bid Process Coordinating services respectively. REC has also jointly promoted Energy Efficiency Services Limited with other PSUs to play a key role in implementation of the National Mission on Enhanced Energy Efficiency under the Jawahar Lal Nehru National Solar Mission.

REC leverages its pan-India presence with a network of 18 Zonal and Project ofices for development and conduct of business.

Performance Highlights

  • Enjoys highest Domestic Credit Rating for long term borrowings from domestic credit rating agencies and International Long Term Credit Ratings from MOODY's and Fitch at par with sovereign ratings for India.
  • Has been rated 'Excellent' for its Operational Performance by GOI for 16th year in succession since 1993-94.
  • Awarded 'MOU Excellence Award' by GOI for Figuring among Top Ten CPSEs in Country five times.
  • Accorded the coveted ' Navratna' status by GOI in 2008.
  • Won Gold Trophy of SCOPE meritorious Award 2008-09 for Best Managed Bank, Financial Institution or Insurance Company.
  • Became a Listed Company in march 2008.
  • Successfully completed the Second Public Offering (FPO) in Feb. 2010.
  • Cumulative Sanctions & Disbursements stand at around Rs. 2,65,000 crores and Rs. 1,33,000 crores respectively.
  • Plans to be a company with portfolio of Rs. 1 lakh crores by end of the XI Plan.

Operating Results for the last 5 financial Years

(Rs. In Crores)

Particulars Units 2005-06 2006-07 2007-08 2008-09 2009-10
1
2
5
6
7
6
7
Sanctions * Rs./Cr. 18771 32923 60768 40746 45358
Disbursements * Rs./Cr. 8007 13733 16304 17158 21132
Resource Mobilisation Rs./Cr. 9062 9438 8377 15457 26678
Profit before Tax Rs./Cr. 830 1006 1312 1920 2649
Profit after Tax Rs./Cr. 638 660 860 1272 2001
Net Worth Rs./Cr. 4198 4013 5368 6190 11080
Dividend on Equity Rs./Cr. 191 177 258 386 604

* FY 2008-09 onwards, Sanctions and Disbursement are excldg. RGGVY Grant

For further details, please surf the site at :http://recindia.nic.in