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{{Short description|Indian infrastructure finance company}}
{{Infobox Company
{{More citations needed|date=September 2019}}
|company_name = Rural Electrification Corporation Limited
{{Use dmy dates|date=July 2024}}
|company_logo =
{{Use Indian English|date=September 2013}}
|company_type = [[Public sector undertaking]]<br/>[[Public]]
{{copy edit|date=March 2024}}
|foundation = [[1969]]
{{Infobox company
|founder =
| name = REC Limited
|location = [[New Delhi]], [[India]]
| logo = REC logo.svg
|area_served = [[India]]
| logo_size = 250px
|key_people =
| logo_alt = REC Logo
|industry = [[Utility]] [[Finance]]
| logo_caption =
|revenue =
| image = REC Corporate Office Delhi.JPG
|operating_income =
| image_size = 250px
|net_income =
| image_alt = REC Headquarters
|assets =
| image_caption = REC corporate office on [[Lodhi Road]], New Delhi.
|equity =
| native_name = आर ई सी लिमिटेड
|num_employees =
| native_name_lang = hi
|parent =
| former_name = Rural Electrification Corporation Limited
|homepage = [http://www.recindia.nic.in/ www.recindia.nic.in]
| type = [[Public company|Public]] [[Subsidiary]]
| traded_as = {{ubl|{{BSE|532955}}|{{nse|RECLTD}}}}
| ISIN =
| industry = Infrastructure finance
| genre =
| fate =
| predecessor = <!-- or: | predecessors = -->
| successor = <!-- or: | successors = -->
| founded = {{Start date and age|1969|07|25|df=yes}}<br />[[New Delhi]], [[Delhi]], India<ref>{{cite web|title=Profile|url=http://recindia.nic.in/index.php?option=com_content&view=article&id=2&Itemid=540&lang=en|website=recindia.nic.in|access-date=7 November 2016}}</ref>
| founder = <!-- or: | founders = -->
| defunct = <!-- {{End date|YYYY|MM|DD}} -->
| hq_location = Core-4, SCOPE Complex, 7, Lodhi Road
| hq_location_city = New Delhi, Delhi
| hq_location_country = India<ref>{{cite web|title=Contact Us|url=http://recindia.nic.in/index.php?option=com_content&view=article&id=61&Itemid=841&lang=en|website=recindia.nic.in|access-date=7 November 2016}}</ref>
| area_served = India
| key_people = Vivek Kumar Dewagan <small>(CMD)</small>
| products =
| brands =
| production =
| production_year = <!-- Year of production data (if known) -->
| services =
| revenue = {{Increase}} {{INRConvert|47571.23|c}} (2024)<ref name="Balance Sheet 2024">[https://www.bseindia.com/xml-data/corpfiling/AttachLive/0d7c8fa4-d436-4878-a7c6-c6df37da6121.pdf "Balance Sheet 31.03.2024"].</ref>
| operating_income = {{Increase}} {{INRConvert|17959.94|c}} (2024)<ref name="Balance Sheet 2024"/>
| profit = {{Increase}} {{INRConvert|14145.46|c}} (2024)<ref name="Balance Sheet 2024"/>
| assets = {{increase}} {{INRConvert|548191.09|c}} (2024)<ref name="Balance Sheet 2024"/>
| equity = {{increase}} {{INRConvert|69350.25|c}} (2024)<ref name="Balance Sheet 2024"/>
| owner = [[Power Finance Corporation]]
| num_employees = 487 (March 2019)
| parent =
| divisions =
| subsid = {{ubl|REC Transmission Projects Company Limited (RECTPCL)|REC Power Distribution Company Limited (RECPDCL)}}
| module = <!-- Used to embed other templates -->
| website = {{URL|https://www.recindia.nic.in/|RECIndia.nic.in}}
| footnotes =
}}
}}


'''REC Limited''', formerly '''Rural Electrification Corporation Limited''', is an Indian [[Public Sector Undertakings in India|public sector company]] which finances and promotes power projects across India. It provides [[loan]]s to Central/State Sector Power Utilities in the country, [[Electricity sector in India#Government-owned power companies|State Electricity Boards]], Rural Electric Cooperatives, NGOs and Private Power Developers.<ref>{{cite web | url=https://www.bloombergquint.com/business/cabinet-approves-sale-of-governments-stake-in-rec-to-pfc#gs.X5793vg | title=Cabinet Approves Sale of Government's Stake in REC to PFC | date=6 December 2018 }}</ref> It is a subsidiary of [[Power Finance Corporation]] (PFC) and is under the administrative control of the [[Ministry of Power (India)|Ministry of Power]], [[Government of India]].
'''Rural Electrification Corporation Limited''' ('''RECL''') ({{nse|RECLTD}}, {{bse|532955}}) is a [[Navaratna]] central public sector Enterprise incorporated under the Companies Act, 1956 in the year 1969 with the main objective of financing rural electrification Schemes in the Country. RECL was granted Mini Ratna -I Status by Govt. of India in the year 2002, to include financing of all project including transmission, distribution and generation without any restriction on population, geographically location or size. RECL was awarded Navaratna status in 2008, endowing it with greater managerial autonomy.<ref name=recl-profile>http://recindia.nic.in/profile.html</ref>


On 20 March 2019, PFC signed an agreement to acquire a 52.63% controlling stake in REC for {{INRConvert|14500|c}}.<ref name="livemint.com">{{cite web |title=PFC to pay entire ₹14,500 crore for REC acquisition on Thursday |url=https://www.livemint.com/companies/news/pfc-to-pay-entire-rs-14-500-crore-for-rec-acquisition-on-thursday-1553610521293.html |website=Livemint |access-date=29 March 2019|date=26 March 2019}}</ref> On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020.<ref>{{cite news |title=PFC completes REC acquisition, hopeful of merger in 2019-20 |url=https://timesofindia.indiatimes.com/business/india-business/pfc-completes-rec-acquisition-hopeful-of-merger-in-2019-20/articleshow/68616802.cms |website=The Times of India |date=28 March 2019 |access-date=29 March 2019}}</ref><ref name="livemint.com"/> However, REC has maintained that merging PFC-REC is no longer an option.<ref>{{Cite web |last=Goswami |first=Sweta |date=19 May 2023 |title=MC Exclusive {{!}} PFC-REC merger no longer an option: REC CMD |url=https://www.moneycontrol.com/news/interview/mc-exclusive-pfc-rec-merger-no-longer-an-option-rec-cmd-10625831.html }}</ref>
The [[Government of India]] divested a 18% stake in RECL in 2008. The company is listed on the [[Bombay Stock Exchange]] and on the [[National Stock Exchange of India]].


In 2023, REC was included in the Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1 September 2023.<ref>{{Cite web |date=2023-08-11 |title=MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded |url=https://www.cnbctv18.com/market/msci-global-standard-index-review-pfc-rec-idfc-first-among-eight-included-acc-excluded-17500661.htm |access-date=2023-08-31 |website=cnbctv18.com}}</ref>
==Business model==
RECL raises financing by issuing taxable bonds, which it lends to India's State Electricity Boards for investment in power generation, transmission, distribution, conservation and maintenance projects. In return, the State Electricity Boards may then pledge their future revenues from subscribers or equity in the projects to RECL.<ref name=recl-model>http://rec.rcmcdelhi.com/</ref><ref name=recl-charter>http://www.recindia.nic.in/charter.html</ref>


REC has also diversified into non-power infrastructure & logistics sector to cover areas such as airports, metro, railways, ports, and bridges.<ref>{{Cite web |last=Livemint |date=2023-05-18 |title=REC targets ₹2.4 trillion loan book in renewable energy portfolio by 2030 |url=https://www.livemint.com/industry/energy/rec-targets-2-4-trillion-loan-book-in-renewable-energy-portfolio-by-2030-11684423837250.html |access-date=2023-08-31 |website=mint}}</ref> REC has 22 regional offices.<ref>{{Cite web |last=Sharma |first=Shalini |date=2023-05-18 |title=REC looking to increase share of green energy in its loan portfolio to 30% by 2030: CMD |url=https://psuwatch.com/newsupdates/rec-looking-to-increase-share-of-green-energy-in-its-loan-portfolio-to-30-by-2030-cmd |access-date=2023-08-31 |website=PSU Watch}}</ref><bdi>.</bdi>
===Lending===

RECL lends to India's State Electricity Boards and Rural Electric Cooperatives under a variety of different programs and schemes. The projects are usually organized depending on their scale, typically by aiming for coverage over a given geographical area. Thus, a project would cover electricity distribution to 100,000 homes in a rural area spread over dozens of villages. On the other hand, in an isolated or under-developed area a project may cover far fewer homes in a hamlet or a village. Other project schemes are specifically designed towards specific goals such as street lighting or for delivering power for farming use. RECL is also a nodal agency for implenting the Rajiv Gandhi Grameen Vidyutikara Yojana (RGGVY), a flagship programme of Ministry of Power, Govt of India.<ref name=recl-category>http://recindia.nic.in/loancateg.html</ref>
==Business operations==
[[File:REC Signage.JPG|thumb|right|265px]]
REC is the 12th [[Maharatna|Maharatna Company]]<ref>{{cite web|url=http://dpe.nic.in/newsite/navmini.htm|title=List of Navratna CPSEs|date=30 November 2010|publisher=Dpe.nic.in|access-date=3 February 2011|url-status=dead|archive-url=https://web.archive.org/web/20110216041335/http://dpe.nic.in/newsite/navmini.htm|archive-date=16 February 2011}}</ref> functioning under the purview of the [[Ministry of Power (India)|Ministry of Power]]. The company is listed on both the [[National Stock Exchange of India|National Stock Exchange]] and the [[Bombay Stock Exchange]]. Business operations in India are supported by a network of 22 Regional Offices, with its corporate headquarters at Gurugram and a registered office in [[New Delhi]]. :<ref>{{Cite web |url=http://content.indiainfoline.com/Admin/ResearchPdf/384499217_LS_Power_Financing_Electrifying_India_220210.pdf |title=Archived copy |access-date=19 January 2011 |archive-date=23 July 2011 |archive-url=https://web.archive.org/web/20110723104252/http://content.indiainfoline.com/Admin/ResearchPdf/384499217_LS_Power_Financing_Electrifying_India_220210.pdf |url-status=dead }}</ref>

===Services===
The company is primarily engaged in providing finance for rural electrification projects across India and provides loans to Central/ State Sector Power Utilities, [[State Electricity Board (disambiguation)|State Electricity Boards]]<!--intentional link to DAB page-->, Rural Electric Cooperatives, NGOs and Private Power Developers. The company sanctions loan as a sole lender or co-lender or in consortium with or without the status of lead financer. It also provides consultancy, project monitoring and financial/ technical appraisal support for projects, also in the role of nodal agency for Government of India schemes or projects. It engages in ascertaining financial requirements of power utilities in the country in the T&D sector along with appraising T&D schemes for financing. REC has financed T&D schemes for system improvement, intensive electrification, pump-set energisation and APDRP Programme.
The company is also actively involved in physical as well as financial monitoring of T&D schemes.

REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for €100M (approximately {{INR}} 6000M) with [[KfW]] under Indo-German Development Cooperation for financing [[renewable energy]] power projects at concessional rates of interest. Eligible projects include solar, wind, small hydro, biomass power, and cogeneration power & hybrid projects

GARV APP is an application developed and maintained by REC, incepted to aid the Grameen Vidyutikaran Mission running under DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana). The App "GARV" (Grameen Vidyutikaran), which provides real-time updates on electrification status of 18452 UE villages, was launched on 14 October 2015 The mobile app is accessible to all stakeholders including the general public at large.

===Finances===
The company was listed on the [[National Stock Exchange of India|National Stock Exchange]] and the [[Bombay Stock Exchange]] on 12 March 2008. REC went for [[Initial Public Offer]] of 156,120,000 Equity Shares in February 2008 which was oversubscribed by about 27 times, raising a total amount of {{INR}} 819 crores. Further Public Offer of 171,732,000 equity shares was made in February 2010. The issue was oversubscribed by 3.14 times, raising a total of {{INR}} 26.47&nbsp;billion

The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance.<ref>{{cite web|url=http://www.brandirectory.com/league_tables/table/global_banking_500/index.php?orderBy=country_name&direction=ASC&page=2|title=The Global Banking 500 League Table|publisher=Brandirectory|access-date=3 February 2011|archive-date=5 March 2016|archive-url=https://web.archive.org/web/20160305101237/http://brandirectory.com/league_tables/table/global_banking_500/index.php?direction=asc&orderby=country_name&page=2|url-status=dead}}</ref> The company is also among the [[Forbes Global 2000]] companies for 2010.<ref>{{cite web|url=https://www.forbes.com/lists/2010/18/global-2000-10_The-Global-2000-India_10Rank.html|title=The Global 2000|date=1 March 2010|work=Forbes.com|access-date=3 February 2011}}</ref> Domestic debt instruments of REC are assigned the highest rating "AAA" by credit rating agencies [[CRISIL]], [[Fitch Group|Fitch]] and [[ICRA Limited|ICRA]]. [[Moody’s]] and [[Fitch Group|Fitch]] have rated its international credit rating at par with India’s sovereign rating.

International collaborations have included past tie-ups for External Commercial Borrowings with [[Standard Chartered Bank]] (London), DEPFA Investment Bank Limited (Cyprus)<ref>http://www.recindia.nic.in/download/Chairman_Speech06_07.pdf {{Bare URL PDF|date=March 2022}}</ref> etc. as well as current tie-ups with [[KfW]] (Germany) and [[Japan International Cooperation Agency]] (Japan) under Official Development Assistance. As an IFC, REC can also issue Infrastructure Bonds and raise funds up to US$500M through External Commercial Borrowing in a year.

==History==
===Early years===

REC was set up in July 1969, in the backdrop of a critical drought situation facing India in the late sixties. The company’s initial mandate was mainly to help State Electricity Boards energise pump-sets across the country to boost agriculture and overcome the crippling impact of three successive years of deficient monsoons. The company also provided finance to accelerate the pace of rural electrification in the overall context of planned programmes for increased agricultural production. Besides finance, REC also offered appraising, consultancy, technical support and monitoring of projects, to assist State Electricity Boards/Power Utilities, Rural Electric Cooperatives and other such institutions.

===Post-Liberalised India (1990s)===

Liberalisation by the [[Government of India]] (GoI) in 1991 saw introduction of amendments to existing laws and reform measures enabling the private sector to participate in large-scale in manufacturing industry, services industry and infrastructure. Sectors like power, airports, seaports, roadways, projects were identified for private participation, and nodal agencies were set up to do the initial spade work and later hand over such projects to private players through competitive bidding routes. In April 2006, GoI identified 14 transmission projects worth {{INR}} 200&nbsp;billion for development by 2012. REC was identified as one of the two GoI-appointed nodal agencies for transferring identified projects to private developers. REC also started extending loans to manufacturers of T&D equipment.

===2000–Current===

Till 2000, REC focused on the Transmission and Distribution aspect of power, with projects for household electrification in rural and semi-urban areas, area electrification in tribal/ dalit areas, intensive electrification, and system improvement projects based on strengthening and improving transmission, sub transmission and distribution systems. REC’s portfolio of Generation projects constituted mainly Mini/Micro Generation Projects up to 25MW capacity till 2000. In June 2002, the mandate of REC was expanded to include financing of all generation projects without limit on size or location. Today, financing of Generation projects has become a major thrust-area of operations for REC, also attracting majority of its private sector borrowers.

Since 2005, REC has been appointed nodal agency by [[Ministry of Power (India)|Ministry of Power]] [http://www.powermin.nic.in/] {{Webarchive|url=https://web.archive.org/web/20130715093330/http://powermin.nic.in/ |date=15 July 2013 }} for Government of India scheme [[Rajiv Gandhi Grameen Vidyutikaran Yojana]]<ref>{{cite web |url=http://rggvy.gov.in/rggvy/rggvyportal/index.html |title=Rajiv Gandhi Grameen Vidyutikaran Yojana |publisher=Rggvy.gov.in |access-date=3 February 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110721161654/http://rggvy.gov.in/rggvy/rggvyportal/index.html |archive-date=21 July 2011 }}</ref><ref>{{cite web|url=http://www.powermin.nic.in/whats_new/pdf/rec.pdf |title=Record |publisher=powermin.nic.in |access-date=3 February 2011}}</ref> aimed at building rural electricity infrastructure and household electrification towards the [[National Common Minimum Programme]] goal of access to electricity for all. Under the scheme, 90% capital subsidy is provided by Government of India for overall cost of projects. Cumulatively till FY10, works in 190,858 villages have been completed and free connections to over 10 million below poverty line (BPL) households have been released. The REC is the nodal agency under the newly launched SAUBHAGYA Yojana by the present [[Premiership of Narendra Modi|Modi government]].<ref>{{Cite web |title=Saubhagya {{!}} Government of India {{!}} Ministry of Power |url=https://powermin.gov.in/en/content/saubhagya |access-date=2023-08-31 |website=powermin.gov.in}}</ref>

==REC Institute of Power Management & Training (RECIPMT)==

In 1979, REC<ref>{{cite web |url= http://www.recipmt.com |title=RECIPMT: HYD – Welcome to RECIPMT |publisher=recipmt.com |access-date=3 February 2011}}</ref> established a national training institute in Hyderabad for the development of techno-managerial skill and efficiency in State Electricity Boards (SEBs), Distribution Companies, Rural Electric Cooperatives and other Power Utilities, and also to conduct in-house training programmes for REC’s employees. CIRE also served as a platform for association with other institutions towards a common goal of Rural Electrification (RE) and rural energy development.

Today, RECIPMT conducts regular programmes on various aspects of Transmission and Distribution for national and international executives in the power sector, including seminars participated by both private and public utilities. Programmes focus on adoption of innovative and cost effective modern technologies, training in both conventional and non-conventional energy areas and practical demonstrations via an in-house Energy Park.{{Citation needed|date=May 2022}}

==Energy Efficiency Services Limited (EESL)==
{{Main|Energy Efficiency Services Limited}}
EESL is a joint venture (JV) with 4 power PSUs – REC, [[Powergrid]], [[NTPC Limited|NTPC]], and [[Power Finance Corporation|PFC]] for implementing energy efficiency projects, promoting usage of energy efficient appliances, promoting the concept of [[Energy Service Companies]] (ESCOs) etc.

==Indian Energy Exchange (IEX)==
{{Main|Indian Energy Exchange}}
REC is an equity partner in Indian Energy Exchange (IEX)[http://www.iexindia.com/], India’s first nationwide, automated, and online electricity trading platform (power exchange/ [[electricity market]]), among other reputed investors like [[IDFC]], [[Adani Group|Adani]], [[Reliance Energy]], [[Lanco Infratech|Lanco]] and [[Tata Power]].

==See also==
* [[Electricity sector in India]]
* [[Saubhagya scheme]]


==References==
==References==
{{reflist}}
{{reflist}}


==External links==
[[Category:Government-owned companies in India]]
{{commons category|Rural Electrification Corporation Limited}}
[[Category:Rural electrification]]
* [http://recindia.nic.in/ Official website]


{{Energy Ministries and Departments of India}}
[[ta:கிராம மின்சாரவசதி நிறுவன அமைப்பு]]
{{Public Sector Undertakings in India}}
{{Nifty 200 companies}}

{{authority control}}

[[Category:Electric power companies of India]]
[[Category:Rural electrification]]
[[Category:Rural development organisations in India]]
[[Category:Financial services companies of India]]
[[Category:Government-owned companies of India]]
[[Category:Companies based in New Delhi]]
[[Category:Indian companies established in 1969]]
[[Category:Energy companies established in 1969]]
[[Category:Ministry of Power (India)]]
[[Category:1969 establishments in Delhi]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]

Latest revision as of 08:53, 7 October 2024

REC Limited
Native name
आर ई सी लिमिटेड
FormerlyRural Electrification Corporation Limited
Company typePublic Subsidiary
IndustryInfrastructure finance
Founded25 July 1969; 55 years ago (1969-07-25)
New Delhi, Delhi, India[1]
HeadquartersCore-4, SCOPE Complex, 7, Lodhi Road,
New Delhi, Delhi
,
India[2]
Area served
India
Key people
Vivek Kumar Dewagan (CMD)
RevenueIncrease ₹47,571.23 crore (US$5.6 billion) (2024)[3]
Increase ₹17,959.94 crore (US$2.1 billion) (2024)[3]
Increase ₹14,145.46 crore (US$1.7 billion) (2024)[3]
Total assetsIncrease ₹548,191.09 crore (US$64 billion) (2024)[3]
Total equityIncrease ₹69,350.25 crore (US$8.1 billion) (2024)[3]
OwnerPower Finance Corporation
Number of employees
487 (March 2019)
Subsidiaries
  • REC Transmission Projects Company Limited (RECTPCL)
  • REC Power Distribution Company Limited (RECPDCL)
WebsiteRECIndia.nic.in

REC Limited, formerly Rural Electrification Corporation Limited, is an Indian public sector company which finances and promotes power projects across India. It provides loans to Central/State Sector Power Utilities in the country, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.[4] It is a subsidiary of Power Finance Corporation (PFC) and is under the administrative control of the Ministry of Power, Government of India.

On 20 March 2019, PFC signed an agreement to acquire a 52.63% controlling stake in REC for ₹14,500 crore (US$1.7 billion).[5] On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020.[6][5] However, REC has maintained that merging PFC-REC is no longer an option.[7]

In 2023, REC was included in the Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1 September 2023.[8]

REC has also diversified into non-power infrastructure & logistics sector to cover areas such as airports, metro, railways, ports, and bridges.[9] REC has 22 regional offices.[10].

Business operations

[edit]

REC is the 12th Maharatna Company[11] functioning under the purview of the Ministry of Power. The company is listed on both the National Stock Exchange and the Bombay Stock Exchange. Business operations in India are supported by a network of 22 Regional Offices, with its corporate headquarters at Gurugram and a registered office in New Delhi.  :[12]

Services

[edit]

The company is primarily engaged in providing finance for rural electrification projects across India and provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. The company sanctions loan as a sole lender or co-lender or in consortium with or without the status of lead financer. It also provides consultancy, project monitoring and financial/ technical appraisal support for projects, also in the role of nodal agency for Government of India schemes or projects. It engages in ascertaining financial requirements of power utilities in the country in the T&D sector along with appraising T&D schemes for financing. REC has financed T&D schemes for system improvement, intensive electrification, pump-set energisation and APDRP Programme. The company is also actively involved in physical as well as financial monitoring of T&D schemes.

REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for €100M (approximately ₹ 6000M) with KfW under Indo-German Development Cooperation for financing renewable energy power projects at concessional rates of interest. Eligible projects include solar, wind, small hydro, biomass power, and cogeneration power & hybrid projects

GARV APP is an application developed and maintained by REC, incepted to aid the Grameen Vidyutikaran Mission running under DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana). The App "GARV" (Grameen Vidyutikaran), which provides real-time updates on electrification status of 18452 UE villages, was launched on 14 October 2015 The mobile app is accessible to all stakeholders including the general public at large.

Finances

[edit]

The company was listed on the National Stock Exchange and the Bombay Stock Exchange on 12 March 2008. REC went for Initial Public Offer of 156,120,000 Equity Shares in February 2008 which was oversubscribed by about 27 times, raising a total amount of ₹ 819 crores. Further Public Offer of 171,732,000 equity shares was made in February 2010. The issue was oversubscribed by 3.14 times, raising a total of ₹ 26.47 billion

The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance.[13] The company is also among the Forbes Global 2000 companies for 2010.[14] Domestic debt instruments of REC are assigned the highest rating "AAA" by credit rating agencies CRISIL, Fitch and ICRA. Moody’s and Fitch have rated its international credit rating at par with India’s sovereign rating.

International collaborations have included past tie-ups for External Commercial Borrowings with Standard Chartered Bank (London), DEPFA Investment Bank Limited (Cyprus)[15] etc. as well as current tie-ups with KfW (Germany) and Japan International Cooperation Agency (Japan) under Official Development Assistance. As an IFC, REC can also issue Infrastructure Bonds and raise funds up to US$500M through External Commercial Borrowing in a year.

History

[edit]

Early years

[edit]

REC was set up in July 1969, in the backdrop of a critical drought situation facing India in the late sixties. The company’s initial mandate was mainly to help State Electricity Boards energise pump-sets across the country to boost agriculture and overcome the crippling impact of three successive years of deficient monsoons. The company also provided finance to accelerate the pace of rural electrification in the overall context of planned programmes for increased agricultural production. Besides finance, REC also offered appraising, consultancy, technical support and monitoring of projects, to assist State Electricity Boards/Power Utilities, Rural Electric Cooperatives and other such institutions.

Post-Liberalised India (1990s)

[edit]

Liberalisation by the Government of India (GoI) in 1991 saw introduction of amendments to existing laws and reform measures enabling the private sector to participate in large-scale in manufacturing industry, services industry and infrastructure. Sectors like power, airports, seaports, roadways, projects were identified for private participation, and nodal agencies were set up to do the initial spade work and later hand over such projects to private players through competitive bidding routes. In April 2006, GoI identified 14 transmission projects worth ₹ 200 billion for development by 2012. REC was identified as one of the two GoI-appointed nodal agencies for transferring identified projects to private developers. REC also started extending loans to manufacturers of T&D equipment.

2000–Current

[edit]

Till 2000, REC focused on the Transmission and Distribution aspect of power, with projects for household electrification in rural and semi-urban areas, area electrification in tribal/ dalit areas, intensive electrification, and system improvement projects based on strengthening and improving transmission, sub transmission and distribution systems. REC’s portfolio of Generation projects constituted mainly Mini/Micro Generation Projects up to 25MW capacity till 2000. In June 2002, the mandate of REC was expanded to include financing of all generation projects without limit on size or location. Today, financing of Generation projects has become a major thrust-area of operations for REC, also attracting majority of its private sector borrowers.

Since 2005, REC has been appointed nodal agency by Ministry of Power [1] Archived 15 July 2013 at the Wayback Machine for Government of India scheme Rajiv Gandhi Grameen Vidyutikaran Yojana[16][17] aimed at building rural electricity infrastructure and household electrification towards the National Common Minimum Programme goal of access to electricity for all. Under the scheme, 90% capital subsidy is provided by Government of India for overall cost of projects. Cumulatively till FY10, works in 190,858 villages have been completed and free connections to over 10 million below poverty line (BPL) households have been released. The REC is the nodal agency under the newly launched SAUBHAGYA Yojana by the present Modi government.[18]

REC Institute of Power Management & Training (RECIPMT)

[edit]

In 1979, REC[19] established a national training institute in Hyderabad for the development of techno-managerial skill and efficiency in State Electricity Boards (SEBs), Distribution Companies, Rural Electric Cooperatives and other Power Utilities, and also to conduct in-house training programmes for REC’s employees. CIRE also served as a platform for association with other institutions towards a common goal of Rural Electrification (RE) and rural energy development.

Today, RECIPMT conducts regular programmes on various aspects of Transmission and Distribution for national and international executives in the power sector, including seminars participated by both private and public utilities. Programmes focus on adoption of innovative and cost effective modern technologies, training in both conventional and non-conventional energy areas and practical demonstrations via an in-house Energy Park.[citation needed]

Energy Efficiency Services Limited (EESL)

[edit]
Main article: Energy Efficiency Services Limited

EESL is a joint venture (JV) with 4 power PSUs – REC, Powergrid, NTPC, and PFC for implementing energy efficiency projects, promoting usage of energy efficient appliances, promoting the concept of Energy Service Companies (ESCOs) etc.

Indian Energy Exchange (IEX)

[edit]
Main article: Indian Energy Exchange

REC is an equity partner in Indian Energy Exchange (IEX)[2], India’s first nationwide, automated, and online electricity trading platform (power exchange/ electricity market), among other reputed investors like IDFC, Adani, Reliance Energy, Lanco and Tata Power.

See also

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References

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  1. ^ "Profile". recindia.nic.in. Retrieved 7 November 2016.
  2. ^ "Contact Us". recindia.nic.in. Retrieved 7 November 2016.
  3. ^ a b c d e "Balance Sheet 31.03.2024".
  4. ^ "Cabinet Approves Sale of Government's Stake in REC to PFC". 6 December 2018.
  5. ^ a b "PFC to pay entire ₹14,500 crore for REC acquisition on Thursday". Livemint. 26 March 2019. Retrieved 29 March 2019.
  6. ^ "PFC completes REC acquisition, hopeful of merger in 2019-20". The Times of India. 28 March 2019. Retrieved 29 March 2019.
  7. ^ Goswami, Sweta (19 May 2023). "MC Exclusive | PFC-REC merger no longer an option: REC CMD".
  8. ^ "MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded". cnbctv18.com. 11 August 2023. Retrieved 31 August 2023.
  9. ^ Livemint (18 May 2023). "REC targets ₹2.4 trillion loan book in renewable energy portfolio by 2030". mint. Retrieved 31 August 2023.
  10. ^ Sharma, Shalini (18 May 2023). "REC looking to increase share of green energy in its loan portfolio to 30% by 2030: CMD". PSU Watch. Retrieved 31 August 2023.
  11. ^ "List of Navratna CPSEs". Dpe.nic.in. 30 November 2010. Archived from the original on 16 February 2011. Retrieved 3 February 2011.
  12. ^ "Archived copy" (PDF). Archived from the original (PDF) on 23 July 2011. Retrieved 19 January 2011.{{cite web}}: CS1 maint: archived copy as title (link)
  13. ^ "The Global Banking 500 League Table". Brandirectory. Archived from the original on 5 March 2016. Retrieved 3 February 2011.
  14. ^ "The Global 2000". Forbes.com. 1 March 2010. Retrieved 3 February 2011.
  15. ^ http://www.recindia.nic.in/download/Chairman_Speech06_07.pdf [bare URL PDF]
  16. ^ "Rajiv Gandhi Grameen Vidyutikaran Yojana". Rggvy.gov.in. Archived from the original on 21 July 2011. Retrieved 3 February 2011.
  17. ^ "Record" (PDF). powermin.nic.in. Retrieved 3 February 2011.
  18. ^ "Saubhagya | Government of India | Ministry of Power". powermin.gov.in. Retrieved 31 August 2023.
  19. ^ "RECIPMT: HYD – Welcome to RECIPMT". recipmt.com. Retrieved 3 February 2011.
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