Rural Electrification Corporation Limited (REC), a listed NAVRATNA Public Sector Enterprise under Ministry of Power, Government of India, was incorporated on July 25, 1969 under the Companies Act 1956. REC is a Non-Banking Financial Company with 'Infrastructure Finance Company' status. Our main objective is to finance and promote power sector projects all over the country.
REC provides loan assistance to various State Power Utilities, Private Sector Project Developers, Central Power Sector Utilities and State Governments for investments in Power Generation, Power Transmission, Power Distribution and other system improvement schemes/initiatives, through its Corporate Office located at New Delhi, 18 project offices and 3 sub offices, located in most States in the country. As on 31.03.16, REC has a loan book of over Rs. 2,00,000 crore and net worth of Rs. 28,618 crore.
The Project Offices and the sub-offices in the States coordinate the programmes of REC’s financing with the concerned State Power Utilities to facilitate formulation of schemes, sanction & disbursement of loans and monitor the implementation of schemes by the State Power Utilities. The different types of projects funded by REC are as under:
- Power Generation Schemes
- Setting up new power generating stations based on conventional sources of energy, i.e. Thermal, Hydro and Gas, along with associated areas like development of coal mines
- Renovation and Modernization (R&M) of existing power generating stations based on conventional sources of energy
- Setting up of power generation plants based on Renewable Energy sources like Solar, Wind, Small Hydro, Biomass etc.
- Power Transmission Schemes
- Evacuation of power from new power generating stations and strengthening/ improvement of existing transmission system in the designated areas
- Power Distribution Schemes
- Strengthening and improvement of the power sub-transmission and distribution system in the designated areas
- Conversion of Low Voltage Distribution System (LVDS) to High Voltage Distribution System (HVDS) in rural areas
- Purchase of equipment and materials for strengthening/ upgradation of T&D systems
- Intensive load development for providing connections to rural consumers in already electrified villages
- Setting up of electrical infrastructure for energisation of agricultural pump sets
- Short Term Loans / Medium Term Loans
- Working capital requirements for purposes like purchase of fuel for power plant, purchase of power, purchase of material and minor equipment, system and network maintenance including repair of transformers, etc.
REC also plays an important role in the implementation of several flagship schemes of the Government of India, such as, acting as the Nodal Agency for implementation of 'Deen Dayal Upadhyaya Gram Jyoti Yojana' (DDUGJY), the scheme for rural electrification; the 'National Electricity Fund' (NEF), the reform linked interest subsidy scheme for power distribution companies; and for the 'Outage Management System' and '11 KV Rural Feeder Management System'; besides acting as the 'Bid Process Coordinator' for selection of Developer through Tariff Based Competitive Bidding process for establishment of Inter-State Transmission Systems through Public-Private-Participation.
REC is actively involved in the implementation of the 'Ujjwal Discom Assurance Yojana' (UDAY), the Government of India scheme launched in October 2015, aimed at financial and operational turnaround of the State sector power distribution utilities and in monitoring of progress of the various reform linked parameters committed by the participating Utilities. REC also provides counter-part funding for the 'Integrated Power Development Scheme' (IPDS), the Government of India scheme for improvement of the urban power infrastructure in the country.
REC has set up a dedicated training institute, 'Central Institute for Rural Electrification' (CIRE) at Hyderabad to cater to the training and development needs of technical and managerial personnel of power utilities as well as in-house programmes for REC personnel round the year, encompassing a broad array of power-related subjects, including technical best practices in transmission and distribution systems, legal aspects of power sector operations, power sector accounting, etc. for national and international participants.