REC Limited
 | |
| Company type | Public sector undertaking Public |
|---|---|
| Industry | Utility Finance |
| Founded | 1969 |
| Headquarters | New Delhi, India |
Area served | India |
| Website | www.recindia.nic.in |
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.[1]
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.
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.[2][3]
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.[4]