About
REC Ltd
Rural Electrification Corporation Ltd (REC) is a Navratna Central Public Sector Enterprise under the Ministry of Power. It is a Government Company engaged in extending financial assistance to State Electricity Boards, State Power utilities/State Power Departments and Private sector for all segments of Power infrastructure. The company is engaged in the financing and promotion of transmission, distribution and generation projects throughout India. Their main objective is to finance and promote rural electrification projects all over the country. They provide financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects sponsored by them.
The company provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its extensive network of 23 offices across the country. The Project Offices in the States coordinate the programmes of REC's financing with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement and implementation of schemes by the concerned SEBs/ State Power Utilities.
The company assists clients in formulating and implementing a broad array of power projects and finance those projects. Their clients primarily include Indian public sector power utilities at the central and state levels and private sector power utilities. Their primary financial product is project-based long-term loans. They fund their business with market borrowings of various maturities, including bonds and term loans.
Rural Electrification Corporation Ltd was incorporated on July 25, 1969 at New Delhi as a private limited company with the name Rural Electrification Corporation Pvt Ltd. In the year 1970, the company commenced lending operations to SEBs. In the year 1979, they set up CIRE in Hyderabad. In the year 1988, the company launched Kutir Jyoti and Jal Dhara programmes for rural electrification.
In the year 1992, the company was declared a public financial institution. In the year 1993, the company entered into MoU with the MoP for the first time to achieve certain performance related targets. In February 1998, the company was registered as a Non Banking Financial Company.
In the year 2002, the company was granted Mini Ratna - I Status. In September 27, 2002, the company was converted into a public limited company and the name was changed to Rural Electrification Corporation Ltd. From the year 2002, the company diversified into financing of Generation projects for creation of new generation capacity.
In the year 2005, the company was appointed as the nodal agency for RGGVY. In the year 2006, the company entered into agreement with Japan International Cooperation Agency for availing a loan facility of JPY 20,629 million. Also, they entered into an agreement with KfW, Frankfurt am Main for availing a loan facility of Euro 70 million.
In the year 2007, the company entered into a syndicated facility agreement with Standard Chartered Bank and DEPFA Investment Bank for availing a loan facility of JPY 23,570 million. In January 2007, REC Transmission Projects Company Ltd, a subsidiary company was incorporated as a public limited company with the main object of REC TPCL is to promote, organize and carry on the business of consultancy services and/or Project implementation in any field of activity relating to transmission & distribution of electricity in India or abroad.
During the year 2007-08, the company made an Initial Public Offer and their shares were listed on the stock exchanges. In the Post-IPO scenario, the shareholding of the Government of India has reduced from 100% to 81.82%. The company entered into agreement with Japan International Cooperation Agency for availing a loan of JPY 20,902 million. In May 2008, the company was granted 'Navratna' status by the Department of Public Enterprise, GoI for their operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision making.
During the year 2008-09, the company sanctioned 20 Nos of new generation/R&M loans and 3 Nos additional loan assistance with total financial outlay of Rs.21525.31 crore, including consortium financing with other financial institutions. Also, they sanctioned a total of 317 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.14511.49 crore. They reported 188,743 electric irrigation pumpsets energized under REC financed schemes. Also, the company entered into agreement with KfW, Frankfurt am Main for availing a loan facility of Euro 70 million.
During the year 2009-10, the company sanctioned 26 Nos of generation / R&M loans including 5 Nos additional loan assistance with total financial outlay of Rs.24031.32 crore. Also, they sanctioned a total of 289 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.15421.64 crore. They reported 240,020 electric irrigation pumpsets energized under REC financed schemes. Also, the company made the Further Public Offer (FPO) during the year and the shareholding of the Government of India in the company reduced to 66.80%.
During the year 2010-11, the Company sanctioned 34 nos. of generation loans including additional loan assistance with total financial outlay of Rs 40,101 crore, including consortium financing with other financial institutions. During the year, 11 nos. Renewable Energy projects including 6 nos. Solar projects were sanctioned with total project cost of Rs 621.06 crore and loan assistance of Rs 390.71 crore.
In September 17, 2010, Reserve Bank of India (RBI) categorized the company as an Infrastructure Finance Company (IFC). In December 2010, the company's subsidiary REC Transmission Projects Company Ltd sold 50,000 shares held in Raichur Sholapur Transmission Company Ltd to consortium of Patel engineering Ltd, Simplex Infrastructure Ltd and BS TransComm Ltd for a consideration of Rs 18.89 crore. In April 21, 2011, Vemagiri Transmission System Ltd (a wholly owned subsidiary of RECTPCL) was incorporated in respect of Transmission System associated with IPPs of Vemagiri Area: Package A.
The company received India Pride Award 2010 for being adjudged 'The Best NBFC' and also Third DSIJ Award 2010-11 - 'Speed King' for fastest growing PSUs across Maharatnas, Navratnas & Miniratnas. The company also featured in Dun & Bradstreet's India's Top PSUs 2011.
During 2012, the corporation sought the approval of Reserve Bank of India (RBI) for issuing bonds to raise up to USD 500 million. The company was awarded India Today - PSUs Awards 2014 for Best HR Practices. During the year, the company Signed MoU with Ministry of Power for the Financial Year 2014-15.
In 2015, the corporation has signed two separate agreements with Andhra Pradesh Power Generation Corporation Limited and Transmission Corporation of Andhra Pradesh Limited. During the year, the Corporation incorporated three Project Specific Special Purpose Vehicles (SPVs), as Subsidiary Companies of Rural Electrification Corporation Limited.
The Board of Directors of REC at its meeting held on 11 August 2016 recommended the issue of bonus shares in the ratio of 1:1.
MOUs were signed between REC Limited and APGENCO, APTRANSCO and AP DISCOMS on 27 January 2017 for extending a financial assistance to the tune of Rs 60000 crore to the power utilities in Andhra Pradesh for the next five years (till March 2022). As per the MOU, APGENCO can avail debt of Rs 40000 crore for generation projects and other loan requirements. APTRANSCO can avail a debt of Rs 10000 crore for transmission system strengthening, augmentation, upgradation, new transmission, power evacuation, R&M projects, etc. in the upcoming capital region and other districts of Andhra Pradesh. APEPDCL and ADSPDCL can avail a debt of Rs 10000 crore for implementation of Distribution projects in the state for strengthening, augmentation, upgradation of distribution infrastructure, sub-transmission system, new distribution, under-ground cabling works, R&M works, works under DDUJGY & IPDS, implementation of smart grid, smart meters, creation of distribution infrastructure for agricultural services, conversion of conventional pump sets into solar pump sets, etc. Apart from financial assistance power utilities have agreed to avail consultancy and management services from REC's subsidiaries for their various activities/projects for the next five years.
Loan agreements were signed between REC and TANGEDCO, TANTRANSCO for financial assistance of Rs 6890 crore on 28 January 2017 in Chennai for implementation of 1X 800 MW super critical thermal power plant at North Chennai, renovation and modernisation of TANGEDCO' s existing thermal power plants and establishment of new 765 KV, 400 KV substations in and around Chennai.
On 6 February 2017, REC announced that it has entered into Memorandums of Understanding (MoUs) with Karnataka Power Corporation Limited (KPCL) and Bangalore Electricity Supply Company Limited (BESCOM) for extending financial assistance to the tune of Rs 39121 crore for the next five years (i.e. till March 2022); i.e. financial assistance upto Rs 27121 crore to KPCL and upto Rs 12000 crore to BESCOM.
On 20 February 2017, REC announced that it has entered into Memorandums of Understanding (MoUs) with Jharkhand Bijli Vitran Nigam Limited (JBVNL) and Jharkhand Urja Sancharan Nigam Limited (JUSNL) for extending financial assistance to the tune of Rs 15150 crore; i.e. financial assistance upto Rs 8150 crore to JBVNL and upto Rs 7000 crore to JUSNL.
On 23 March 2017, REC announced that it has entered into Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC) for extending financial assistance to the tune of Rs 4650 crore for ongoing and upcoming projects of DVC.
On 5 April 2017, REC announced that its wholly owned subsidiary REC Transmission Projects Company Limited has handed over project specific Special Purpose Vehicles (SPV) namely NER-II Transmission Limited to M/s Sterlite Grid 4 Limited on 31 March 2017.
On 15 May 2017, REC announced that the company has entered into Memorandums of Understanding (MoUs) with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO) for extending financial assistance to the tune of Rs 85723 crore, i.e. financial assistance upto Rs 60063 crore to TANGEDCO and upto Rs 25660 crore to TANTRANSCO. The MoUs are non-binding in nature and the financial assistance is subject to appraisal of the proposal(s) to be submitted by the respective entities to REC and approval of Competent Authority.
On 30 May 2017, REC reported its highest ever annual net profit of Rs 6246 crore for the financial year 2016-17.
On 30 June 2017, REC's Green Bond was listed on the London Stock Exchange. REC launched its maiden USD Green Bonds to become the first Indian PSU corporate to launch Green Bonds denominated in US Dollars, against the backdrop of green energy's enormous potential in the Indian power sector and the Indian Government's thrust on developing this space.
On 24 August 2017, REC signed a Memorandum of Understanding (MoU) extending a term loan worth Rs 13000 crore to Maharashtra State Power Generation Company Limited ( Mahagenco) for generation projects, FGD systems, STP, working capital and special loan requirements.
REC and Patratu Vidyut Utpadan Nigam Limited (PVUNL) signed a loan agreement on 14 November 2017 for establishing 3x800 MW Patratu Super Thermal Power Project Phase-I in Jharkhand. The project cost of Rs 18668 crore is funded in debt: equity ratio of 75:25 and Rs 14000 crore (entire debt component of project) is sanctioned by REC as sole lender for the project.
With a view to have better operational efficiency and to reap the benefits of higher capital base, pooled resources and to create one big consultancy firm, the Board of Directors of REC at its meeting held on 6 February 2018 approved the Scheme of Amalgamation of both wholly owned subsidiaries of the company viz. REC Transmission Projects Company Limited (Transferor Company) and REC Power Distribution Company Limited (Transferee Company).
REC concluded a USD 400 million Reg S bonds deal in London on 11 December 2007 for refinancing the existing ECB. The bond was priced at 115 basis points over three years US Treasury.
On 12 January 2018, REC announced that it has signed a loan agreement of Rs 10453 crore with TANGEDCO for setting up of TANGEDCO's Udangudi Stage-I, 2x660 MW Coal based Supercritical Thermal Power Project in Tuticorin District of Tamil Nadu. The loan assistance from REC will not only improve the power infrastructure of the state utilities but will also improve their financial and operational performance.
On 16 January 2018, REC Transmission Projects Company Limited (RECTPCL), a wholly owned subsidiary of Rural Electrification Corporation Ltd (REC), handed over project specific Special Purpose Vehicle (SPV) namely ERSS XXI Transmission Limited to M/s Power Grid Corporation of India Limited (PGCIL) on 12 January 2017.
On 15 March 2018, REC announced that it has successfully priced 10-year USD Reg-S Bond at a coupon of 4.625% and raised USD 300 million. The issuance received an excellent response with order book of more than USD 900 million. The net proceeds will be used for power sector development.
During the financial year 2019-20, Company sanctioned 84 nos. of Generation / R&M / other loans including 9 nos. of additional loans with total loan assistance of ?55,811.89 crore, including consortium financing with other financial institutions.
During the financial year 2019-20, Company sanctioned 17 nos. of Renewable Energy projects with installed generation capacity aggregating to 1,754 MW, with total loan assistance of Rs. 7,026.33 crore. Out of the same, 7 were solar photo-voltaic projects aggregating 917 MW, another 7 were wind energy projects aggregating 837 MW, 1 was procurement and installation of Turbine & Generator unit for a small hydro project, 1 was for DDG component of DDUGJY works and 1 loan was to a State DISCOM for meeting its renewable purchase obligations.
During the financial year 2019-20, the Company completed commissioning of sub-stations including augmentation: 1,729 nos, HT Lines feeder segregation (including new 11 kV lines): 1,97,019 cKm, LT Lines: 4,61,875 cKm, Commissioning of Distribution Transformers: 4,96,181 nos., Installation of consumer meters: 45,53,651 nos. and Metering of Distribution Transformer & Feeders: 14,589 nos.
During the financial year 2019-20, the Company sanctioned total loan assistance of Rs 1,10,907.99 crore towards various power sector
projects/schemes. The same included Rs 55,811.89 crore sanctioned towards generation projects, Rs 7,026.33 crore towards renewable energy projects, Rs 41,604.77 crore towards T&D projects and Rs 6,465.00 crore towards short term, medium term & other loans. Further, the Company disbursed a total loan amount of Rs 75,666.95 crore in the financial year 2019-20. The same included Rs 27,490.87 crore towards generation projects, Rs 5,699.09 crore towards renewable energy projects, Rs 30,856.19 crore towards T&D projects, Rs 6,390.00 crore towards short term, medium term & other loans and Rs 5,230.80 crore of counter-part funding under DDUGJY including DDG (Decentralized Distributed Generation) and SAUBHAGYA schemes. Further, grant/subsidy of Rs 6,473.88 crore provided by the Government of India was also disbursed to various states/implementing agencies during the financial year 2019-20 under the DDUGJY, DDUGJY-DDG and SAUBHAGYA schemes.
50 MW Wind Power Project of Renew Group in Karnataka was financed by REC in FY'19-20. 150 MW Solar Power Project of Avaada Group was financed by REC in Pavagada Solar Park in FY 2019-20.
During the financial year 2020-21, Company sanctioned total loan assistance of Rs 1,54,820.87 crore towards various power sector
projects/schemes. The same included Rs. 39,613.53 crore towards generation projects, Rs. 17,171.34 crore towards renewable energy
projects, Rs. 19,492.75 crore towards T&D projects, Rs. 60,191.36 crore towards liquidity infusion scheme of the Government of India under Atmanirbhar Bharat and Rs. 4,750.00 crore towards other loans including short-term and medium-term loans. Further, outstanding dues of Rs. 13,601.89 crore, on which moratorium was extended pursuant to RBI directive and Board approved moratorium policy, are also included in the above sanctions mentioned.
During the financial year 2020-21, Company disbursed a total amount of Rs 92,987.49 crore, which included Rs 25,929.76 crore towards generation projects, Rs 3,265.13 crore towards renewable energy projects, Rs 19,301.22 crore towards T&D projects, Rs 39,115.50 crore towards liquidity infusion scheme of the Government of India under Atmanirbhar Bharat and Rs 3,900.79 crore towards other loans including short term-and medium-term loans, besides Rs 1,475.09 crore of counter-part funding under DDUGJY, DDUGJY-DDG and SAUBHAGYA schemes of the Government of India. Apart from the above, your Company also disbursed total subsidy of Rs 4,940.62 crore from the Government of India, i.e., Rs 4,527.01 crore under DDUGJY, Rs 25.49 crore under DDUGJY-DDG and Rs 388.12 crore under the SAUBHAGYA scheme. Apart from the above, the Company also disbursed total subsidy of Rs. 4,940.62 crore from the Government of India during the financial year 2020-21, i.e., Rs. 4,527.01 crore under DDUGJY, Rs. 25.49 crore under DDUGJY-DDG and Rs. 388.12 crore under SAUBHAGYA schemes.
During the financial year 2020-21, two wholly owned subsidiaries of the Company were amalgamated to create a single entity, to
achieve better synergies in operations, greater access to different market segments and to reap the benefits of higher capital base
and pooled resources. The amalgamated entity is now known as REC Power Development and Consultancy Limited (formerly REC
Power Distribution Company Limited, RECPDCL). In FY-2020-21, Company financed 300 MW solar power project of Avaada Energy Private Limited in Pavagada Solar Park, Karnataka.
During the financial year 2020-21, the Company sanctioned 23 nos. of Generation, R&M (Renovation & Modernization) and other loans, including 2 nos. of additional loans with total loan assistance of Rs 39,613.53 crore, including consortium financing with other financial institutions. In addition to above, moratorium was extended on outstanding dues of Rs 4,687.80 crore of generation loans during the year under review, pursuant to Board approved moratorium policy. These are also counted in the sanctions. It financed Pump-house of Purushothapatanam Lift Irrigation Scheme Stage-I at Andhra Pradesh and 252 MW Wind Power Project of Vivid Solaire Energy Private Limited in Tuticorin, Tamil Nadu. REC also financed 2x60 MW Vyasi Hydro-electric Project in Dehradun, Uttarakhand.
During the financial year 2020-21, Company sanctioned 40 nos. of Renewable Energy projects with installed generation capacity aggregating to 3,759 MW, with total loan assistance of Rs 17,171.34 crore. The above loans included 20 solar photo-voltaic projects with aggregate capacity of 2,902 MW, 4 wind energy projects with aggregate capacity of 706 MW, 1 solar wind hybrid project of 150 MW capacity, 1 solar module and cell manufacturing project of 2000 MWp per annum capacity, 3 solarization projects under KUSUM scheme, 1 small hydro project of 1 MW, 6 projects for repair and maintenance of hydel plants and 4 E-vehicle projects for procurement of total 902 E-buses. In addition to above, moratorium was extended on outstanding dues of Rs 1,040.60 crore of renewable energy loans during the year under review, pursuant to Board approved moratorium policy.
During the financial year 2020-21, Company sanctioned Transmission & Distribution (T&D) schemes and projects involving a total loan assistance of Rs. 19,492.75 crore, including loan towards inter-state/intra-state transmission projects in private sector. The loans under T&D category included loans towards primary power evacuation schemes associated with generating plants, system improvement schemes, schemes for procurement and installation of equipment/material like meters, transformers, conductors, tower material, cables etc. Further, it also included loan component under Government-approved schemes like DDUGJY, IPDS and SAUBHAGYA and infrastructure schemes for providing electricity access to various categories of consumers, including agricultural consumers.
During the financial year 2020-21, REC completed works under the 3 schemes of Government of India i.e., DDUGJY, PMDP-2015 for J&K and SAUBHAGYA such as, metering of distribution transformers (nos.): 61,994 nos., Feeder separation (including 11 kV lines) cKm: 30,668 cKm; Metering of 11 kV feeders (nos.): 1,360 nos., and commissioning of sub-stations (including augmentation) (nos.): 570 nos. In addition, 2,385 ckm 33 kV lines were installed, 54,964 cKm of LT lines were installed, 66,017 nos. of distribution transformers were commissioned and 15,20,550 nos. of consumer meters were installed. Apart from these, electrification of 4.93 lakh households was achieved under SAUBHAGYA.
During the financial year 2020-21, REC had two wholly owned subsidiaries viz., REC Power Distribution Company Limited (later renamed as REC Power Development and Consultancy Limited w.e.f. July 16, 2021) (RECPDCL) and REC Transmission Projects Company Limited (RECTPCL). Accordingly, RECTPCL (Transferor Company) was amalgamated with RECPDCL (Transferee Company) through the Scheme of Amalgamation which became effective from February 6, 2021.
In FY' 2021-22, REC financed 350 MW Solar PV project of Avaada Energy in Bikaner, Rajasthan. It sanctioned loans worth Rs. 54,421.76 crore. The cumulative loans sanctioned since inception till March 31, 2022, were Rs. 13,08,992.08 crore. It sanctioned 53 nos. of loans towards generation projects including hydropower projects, implementation of pollution control equipment, renovation & modernization schemes, irrigation projects etc. and sanctioned total loan assistance of Rs. 16,089.15 crore. It sanctioned 15 nos. of Renewable Energy projects with installed generation capacity aggregating to 1,609 MW, with total loan assistance of Rs. 14,733.52 crore.
During financial year 2022-23, the Company had issued bonus shares to its shareholders in the month of August 2022, in the ratio of 1:3, i.e., one (1) bonus equity share of Rs 10/- each fully paid-up for every 3 existing equity shares of Rs 10/- each fully paid-up resulting in issuance of 65,83,06,000 fully paid-up new equity shares of Rs 10/- each. This increased the issued and paid-up share capital to Rs 2,633.22 crore, comprising of 2,63,32,24,000 equity shares of Rs 10/- each.
As on March 31, 2023, Power Finance Corporation Limited, a Government of India undertaking, held 52.63% of the paid-up equity share capital of the Company, comprising of 1,38,59,93,662 equity shares of Rs 10/- each and the balance 47.37% paid-up equity share capital was held by public shareholders.
In April 2023, REC raised USD 750 Million Green Bonds and resulting, the bonds got listed at IFSC Stock exchanges, i.e., India INX and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
During financial year 2022-23, Company graded 143 utilities (excluding State Government), out of which 20 utilities were graded as A++, 38 as A+, 30 as A, 19 as B, 32 utilities as C category and 1 utility as D category. It sanctioned 76 nos. of loans towards generation projects including hydropower projects, implementation of pollution control equipment, renovation & modernization schemes, irrigation projects etc. and sanctioned total loan assistance of Rs 34,529.33 crore. It sanctioned 35 nos. of Renewable Energy projects with installed generation capacity aggregating to 6,488 MW & some infra projects, with total loan assistance of Rs 21,371.11 crore. It sanctioned 408 nos. of Transmission & Distribution (T&D) schemes/ projects involving a total loan assistance of Rs 1,22,050 crore including projects under RDSS, LPS and RBPF schemes of the Government of India.
During the financial year 2022-23, the Company disbursed an amount of Rs 96,846.30 crore, including Rs 25,049.27 crore towards generation projects, Rs 12,984.89 crore towards renewable energy projects, Rs 27,502.84 crore towards T&D projects, Rs 1,453.29 crore towards Power Infrastructure projects and Rs 29,621.37 crore towards other loans including short term, RBPF etc.
An aggregate 8.03 GW rooftop solar capacity was reported installed in the country as on February 28, 2023.
REC Ltd
Chairman Speech
Dear Stakeholders,
I feel honored to present to you, the 53,d Annual Report of
your Company, marking yet another year of successful achievements. The start of financial
year 2021-22 was tough for everyone, including us, owing to the second wave of pandemic.
As a financial institution dedicated to power sector, we are sensitive towards the
operational issues faced by the industry and keen towards the overall well-being of
economy. With adaptability and resilience, we have safeguarded the value of our
stakeholders and performed impressively, even in these uncertain times.
Your Company made its highest ever net profit of Rs. 10,046 crore,
which was 20% above the last year, owing to its cost-effective resource management and
strong financial policies. The Net Worth of your Company as on March 31,2022 stood at Rs.
50,986 crore, which was 17% above the net worth a year ago, indicating significant value
addition. As an Infrastructure Finance Company, REC's Gross Loan Asset Book as on March
31, 2022, stood at a historic high of Rs. 3,85,371 crore. Your Company maintained
"AAA" rating for its domestic debt instruments and international rating of
"Baa3" and "BBB-", which is at par with the sovereign rating of India.
These strong fundamentals are coupled with a future-ready outlook, which empower us for
the times to come.
In addition to its business goals, REC has also been and shall continue
to be, a reliable partner of the Government in achieving national goals of the power
sector. It is heartening to see that electricity has reached the remotest corners of the
country. The flagship schemes of Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and
Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), for which your Company was
the nodal agency of the Ministry of Power, achieved successful completion and have truly
laid the foundation of Ujjwal Bharat, a brighter and more prosperous India. The
power sector is now poised for modernization and technological up-gradation, reduction of
power prices for consumers and optimization of efficiency and service delivery. We are
proud to be associated with the Rs. 3 lakh crore reforms-based and results-linked Revamped
Distribution Sector Scheme (RDSS) of the Government, which is a progressive step in
this direction.
ECONOMIC OVERVIEW
The global economy entered the year 2022 in a weaker position than
previously expected, with the pandemic causing inflation, increase in food prices and
disrupted supply chains across the world. Geopolitical conflicts and the war in Ukraine
also added to the uncertainty. However, general business sentiment is improving across the
globe. Even as the supply chains faced inevitable pressure after the pandemic, trade of
goods & services picked up fast and continues to be stronger. As per a report by the
United Nations Conference on Trade and Development, the value of global trade reached a
record level of USD 28.5 trillion in 2021, which is an increase of 25% over 2020 and 13%
over 2019, just before the pandemic struck. Trade in services also grew substantially,
nearly reaching their pre-pandemic levels.
Inflation, however, is expected to remain elevated for a longer period
than previous forecasts. For 2022, the inflation is projected at 5.7% in advanced
economies and 8.7% in emerging market & developing economies. Countries which have
weaker economic policies and higher dependence on global supply chains.are bound to be
more affected in this scenario. This is where we must realize the importance of Atmanirbhar
Bharat, the mantra given by our Hon'ble Prime Minister.
India continues to reign as the fastest growing economy in the world.
RBI has projected real GDP growth of India at 7.2% for FY 2022-23, whereas Asian
Development Bank has pegged India's GDP growth at 7.5% in 2022-23 and 8% in 2023-24. We
saw an immensely successful nation-wide vaccination programme, which was instrumental in
containing the damage by the pandemic, given the huge demographics of ourcountry.The
Government's broad range of Covid responses, including fiscal, monetary and health
packages, mitigated the adversities well in time. The results are visible in improving
socio-economic indicators such as power demand, labour participation and railway freight
traffic. Having said that, I would say, it is still not the time to drop caution, by
industry as well as by common citizens. We have to strengthen ourselves as a nation and
support each other, so as to absorb any external impacts.
POWER SECTOR REFORMS
The global electricity demand grew by 6% in 2021, which is a healthy
sign of economic recovery. In India, the total installed generation capacity crossed the
400 GW mark. Record increase in transmission lines and additions to renewable energy space
are taking place rapidly. In addition, the Government is rolling out several reforms to
strengthen the distribution sector. RDSS, the recently launched scheme of the Government
after the success of DDUGJY and SAUBHAGYA, is aimed to improve the quality, reliability
and affordability of power supply to consumers, through a financially sustainable and
operationally efficient distribution sector.
The objectives of RDSS include reduction in AT&C losses to
pan-India levels of 12-15% by 2024-25 and reduction in ACS-ARR gap to zero by 2024-25,
both extremely important milestones for the holistic growth of power sector. The scheme
also lays special emphasis on leveraging advanced technologies like Artificial
Intelligence and Machine Learning.
Under the guidance of Ministry of Power, your Company has developed a
framework for 'DISCOM Consumer Service Rating', wherein discoms are rated based on
operational parameters, with the aim to promote healthy competition and improve
performance in deficient areas. Your Company is also publishing periodic reports on key
regulatory parameters, which provide a guiding light to the power sector, through
compilation, benchmarking and comparative assessment of various utilities and highlighting
corrective measures wherever required.
As a step towards addressing the mounting power purchase dues of State
power utilities, the Ministry of Power has issued the Electricity (Late Payment Surcharge
and Related Matters) Rules, 2022 or LPS Rules, with the aim to financially strengthen the
electricity suppliers and bringing financial discipline. REC will be extending financial
support to discoms for timely payment of their dues under the LPS Rules, which will help
in achieving financial sustainability in the Indian power sector.
FINANCIAL & OPERATIONAL PERFORMANCE
After the pandemic, power projects witnessed some delays in take-off
and commissioning, owing to movement restrictions, labour issues etc. As a spillover, the
Company's sanction of loans during FY 2021-22 were on the lower side, at Rs. 54,422
crore.These loans were towards various conventional generation projects, renewable energy
projects, T&D projects, short-term, medium-term and other loans. Renewable projects
constituted 27% of the total loans sanctioned during the year. Your Company is constantly
endeavoring to increase its green portfolio, in keeping with the Government's long-term
vision for renewable energy sector.
The disbursements made by your Company during FY 2021-22 were Rs.
64,150 crore, towards various conventional generation projects, renewable energy
projects,T&D projects and other loans, including counter-part funding under DDUGJY and
SAUBHAGYA. The disbursements included Rs. 19,752 crore to various power utilities under
the Liquidity Infusion Scheme of the Government, under Atmanirbhar Bharat. Apart
from the above, your Company also disbursed a subsidy of Rs. 5,318 crore under various
Government schemes.
The operating income of your Company for FY 2021-22 was Rs. 39,132
crore on a standalone basis, which was 11% higher than last year. The total comprehensive
income for FY 2021-22 was Rs. 9,987 crore, which was 19% higher than last year. The EPS
recorded a high of Rs. 50.87 per equity share of Rs. 10/- each for FY 2021-22.
The capital adequacy ratio of your Company as on March 31, 2022 was
23.61%, indicating a healthy capacity to support future growth. REC is also committed to
keep its NPAs at minimum level and has a dedicated team, to look into the resolution of
stressed assets through appropriate means, including IBC route. At the end of financial
year 2021-22, the Gross Credit Impaired Assets (Stage III) and Net Credit Impaired Assets
(Stage III) of REC stood at 4.45% and 1.45% of the Gross Loan Assets, respectively.
CAPITAL STRUCTURE & BONUS ISSUE
As on March 31,2022, the authorized share capital of your Company was
Rs. 5,000 crore, consisting of 500 crore equity shares of Rs. 10/- each. The issued and
paid-up share capital was Rs. 1,974.92 crore, consisting of 197,49,18,000 equity shares of
Rs. 10/- each. Power Finance Corporation Limited, a Government of India undertaking, holds
52.63% of the paid-up equity share capital of the Company; and the balance 47.37% is held
by public.
Pursuant to the guidelines issued by Department of Investment and
Public Asset Management (DIPAM), the Company has obtained approval of its shareholders
through postal ballot process on August 9, 2022, to issue bonus shares in the ratio of
1:3, i.e., 1 bonus equity share of Rs. 10/- each fully paid-up for every 3 existing equity
shares of Rs. 10/- each fully paid-up, by capitalizing a sum of Rs. 658.306 crore standing
to the credit of its 'Securities Premium Account'. After the allotment of said bonus
shares, the paid-up share capital of the Company will increase to Rs. 2,633.22 crore,
consisting of 2,63,32,24,000 equity shares of Rs. 10/- each.
DIVIDEND
Your Company is one of the highest dividend-paying companies amongst
its peers. For the financial year 2021-22, the Company has already paid interim dividend
of Rs. 10.50/- per equity share of Rs. 10/- each in three tranches. Additionally, final
dividend of Rs. 4.80/- per equity share of Rs. 10/- each is subject to approval of the
shareholders in the ensuing 53,d Annual General Meeting. If approved, the total
dividend for financial year 2021-22 will work out to Rs. 15.30/- per equity share of Rs.
10/- each, which is 153% of the total paid-up share capital of the Company.
CORPORATE GOVERNANCE
REC is committed to adopt and follow the best practices in Corporate
Governance. Your Company meets all the applicable requirements which are within its ambit,
under the Companies Act, 2013, SEBI LODR Regulations, 2015, Guidelines on Corporate
Governance for Central Public Sector Enterprises, 2010 issued by the Department of Public
Enterprises and Secretarial Standards issued by the Institute of Company Secretaries of
India.
Your Company is short of the required number of Independent Directors.
Flowever, being a Government company, the power to appoint Directors on the Board vests
with the administrative Ministry. We have requested the Ministry of Power to expedite the
appointment of Independent Directors and the matter is under active consideration.
POLICY INITIATIVES
The policy framework of your Company is constantly reviewed, updated
and strengthened, to enhance business value and to meet statutory requirements. During FY
2021-22, for enhancing the competitive position in the market, your Company introduced as
well as reviewed various business-oriented policies, including policies for term loan to
state sector utilities, funding of projects under the PM-KUSUM scheme, appraisal and
financing of transmission projects in private sector, prepayment policy, letter of credit
policy and exposure norms for State sector borrowers, to name a few.
RISK MANAGEMENT
Your Company has a comprehensive Risk Management Policy covering credit
risk, operational risk, liquidity risk and market risk. There are systematic risk
management procedures to mitigate each type of risk. The Company follows a structured
appraisal process with detailed methodology, to mitigate the credit-risk. Operational
risks are managed through a comprehensive Risk Register covering all functional areas.
Liquidity risk is managed through a mix of strategies including forward-looking resource
mobilization. Market Risk is mitigated through a systematic Asset Liability Management
frameworkand well-defined hedging policies.
The Company has a Board-level Risk Management Committee which oversees
the developments in this area and makes its recommendations from time to time. A Chief
Risk Officer has been appointed in the Company, as required under the RBI norms. Further,
the Company has adopted policy and framework for Risk Based Internal Audit, in line with
the requirements of RBI.
CORPORATE SOCIAL RESPONSIBILITY
Your Company pursues CSR initiatives with focus on socially beneficial
projects to reach a wide spectrum of beneficiaries, while giving priority to developmental
issues of national concern. During the financial year 2021-22, REC has supported CSR
projects in various thematic areas as per its CSR Policy, and spent a total amount of Rs.
171.07 crore, which is above the minimum limit prescribed under the Companies Act, 2013.
I am happy to share, that in keeping with the spirit of inclusive
development, your Company has sponsored health and nutrition projects in various
aspirational districts, including Gajapati in Odisha, Mamit in Mizoram, Kiphire in
Nagaland, Muzaffarpur in Bihar, Udham Singh Nagar in Uttarakhand, Chandel in Manipur and
West Sikkim in Sikkim.
MoU RATING & AWARDS
In terms of Memorandum of Understanding (MoU) signed with the holding
company. Power Finance Corporation Limited, the performance of your Company has been rated
as "Excellent" for the financial year 2020-21, with a perfect score of 100 by
the Department of Public Enterprises. REC is the only CPSE in the country, to secure 100
out of 100 marks in MoU evaluation last year.
Not only that, your Company has been named as India's Leading NBFC in
Infrastructure Financing Category by Dun & Bradstreet, at its BFSI & FinTech
Awards; and also the'Best Organization for Women Empowerment'by Exchange4Media,at its
Women Achievers Awards.
THE PATH AHEAD
With implementation of programmes like '24x7 Power for AH', we expect a
huge latent demand for power in the near future. The increased power demand would also
require robust transmission & distribution infrastructure, thereby attracting more
investment in
this area. REC offers a wide range of products to finance the diverse
needs of the power sector, across the value-chain.
At the COP26 session at Glasgow, UK in November 2021, our Hon'ble Prime
Minister has proposed a visionary Panchamrit strategy, to meet the climate change goals of
the world. These include meeting 50% of electricity demand from non-fossil fuel sources by
2030, reduction in emission intensity by 45% by 2030 as compared to 2005 level and
achieving net zero emission by 2070. We support these extremely pertinent targets for the
energy sector as well as for the mankind.
In the endeavour to support these targets, your Company has amplified
its financing in renewable energy projects, e-mobility infrastructure, manufacturing of
solar cells & modules, hybrid renewables, PM-KUSUM projects, pollution control
equipment,smart- grid and smart-metering. Your Company is also looking to diversify into
financing of non-power infrastructure and distribution works, including through PPP and
franchise models. REC is building close partnerships with national and international
financial institutions and multilateral development organizations, to raise resources at
competitive rates and to align with the international best practices. I am optimistic,
that your Company is going to be at the forefront of power sector and beyond, in the times
to come.
ACKNOWLEDGEMENTS
Before I conclude, I express my sincere thanks to the Hon'ble Cabinet
Minister of Power and New & Renewable Energy, Hon'ble Minister of State for Power,
Secretary (Power) and other Officials of the Ministry of Power, for their continued
support and guidance. I also thank the holding company. Power Finance Corporation Limited,
for their continued cooperation.
I am grateful to the officials of Ministry of Finance, Ministry of
Corporate Affairs, Department of Public Enterprises, Department of Investment and Public
Asset Management, NITI Aayog, Reserve Bank of India, Securities & Exchange Board of
India, Stock Exchanges and the Depositories, for their support and cooperation.
Towards constantly improving the Corporate Governance Standards of REC,
I would like to thank the Comptroller & Auditor General of India, Statutory Auditors,
Secretarial Auditors, Registrars and other professionals associated with the Company.
REC's success is based mainly on the trust and goodwill of its
stakeholders and for that, I would like to thank all shareholders, debenture-holders,
investors, lenders, borrowers and customers, including State Governments, State power
utilities and private sector entrepreneurs.
Lastly, I owe a heartfelt thanks to my esteemed colleagues on the Board
for their strategic inputs and the entire workforce of REC for their untiring efforts. I
look forward to valuable contribution from all of you, to embark on the journey to make
REC bigger and better.
  Â
REC Ltd
Company History
Rural Electrification Corporation Ltd (REC) is a Navratna Central Public Sector Enterprise under the Ministry of Power. It is a Government Company engaged in extending financial assistance to State Electricity Boards, State Power utilities/State Power Departments and Private sector for all segments of Power infrastructure. The company is engaged in the financing and promotion of transmission, distribution and generation projects throughout India. Their main objective is to finance and promote rural electrification projects all over the country. They provide financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects sponsored by them.
The company provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its extensive network of 23 offices across the country. The Project Offices in the States coordinate the programmes of REC's financing with the concerned SEBs/State Power Utilities and facilitate in formulation of schemes, loan sanction and disbursement and implementation of schemes by the concerned SEBs/ State Power Utilities.
The company assists clients in formulating and implementing a broad array of power projects and finance those projects. Their clients primarily include Indian public sector power utilities at the central and state levels and private sector power utilities. Their primary financial product is project-based long-term loans. They fund their business with market borrowings of various maturities, including bonds and term loans.
Rural Electrification Corporation Ltd was incorporated on July 25, 1969 at New Delhi as a private limited company with the name Rural Electrification Corporation Pvt Ltd. In the year 1970, the company commenced lending operations to SEBs. In the year 1979, they set up CIRE in Hyderabad. In the year 1988, the company launched Kutir Jyoti and Jal Dhara programmes for rural electrification.
In the year 1992, the company was declared a public financial institution. In the year 1993, the company entered into MoU with the MoP for the first time to achieve certain performance related targets. In February 1998, the company was registered as a Non Banking Financial Company.
In the year 2002, the company was granted Mini Ratna - I Status. In September 27, 2002, the company was converted into a public limited company and the name was changed to Rural Electrification Corporation Ltd. From the year 2002, the company diversified into financing of Generation projects for creation of new generation capacity.
In the year 2005, the company was appointed as the nodal agency for RGGVY. In the year 2006, the company entered into agreement with Japan International Cooperation Agency for availing a loan facility of JPY 20,629 million. Also, they entered into an agreement with KfW, Frankfurt am Main for availing a loan facility of Euro 70 million.
In the year 2007, the company entered into a syndicated facility agreement with Standard Chartered Bank and DEPFA Investment Bank for availing a loan facility of JPY 23,570 million. In January 2007, REC Transmission Projects Company Ltd, a subsidiary company was incorporated as a public limited company with the main object of REC TPCL is to promote, organize and carry on the business of consultancy services and/or Project implementation in any field of activity relating to transmission & distribution of electricity in India or abroad.
During the year 2007-08, the company made an Initial Public Offer and their shares were listed on the stock exchanges. In the Post-IPO scenario, the shareholding of the Government of India has reduced from 100% to 81.82%. The company entered into agreement with Japan International Cooperation Agency for availing a loan of JPY 20,902 million. In May 2008, the company was granted 'Navratna' status by the Department of Public Enterprise, GoI for their operational efficiency and financial strength, which affords greater operational freedom and autonomy in decision making.
During the year 2008-09, the company sanctioned 20 Nos of new generation/R&M loans and 3 Nos additional loan assistance with total financial outlay of Rs.21525.31 crore, including consortium financing with other financial institutions. Also, they sanctioned a total of 317 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.14511.49 crore. They reported 188,743 electric irrigation pumpsets energized under REC financed schemes. Also, the company entered into agreement with KfW, Frankfurt am Main for availing a loan facility of Euro 70 million.
During the year 2009-10, the company sanctioned 26 Nos of generation / R&M loans including 5 Nos additional loan assistance with total financial outlay of Rs.24031.32 crore. Also, they sanctioned a total of 289 system improvement schemes and bulk loan schemes involving a loan outlay of Rs.15421.64 crore. They reported 240,020 electric irrigation pumpsets energized under REC financed schemes. Also, the company made the Further Public Offer (FPO) during the year and the shareholding of the Government of India in the company reduced to 66.80%.
During the year 2010-11, the Company sanctioned 34 nos. of generation loans including additional loan assistance with total financial outlay of Rs 40,101 crore, including consortium financing with other financial institutions. During the year, 11 nos. Renewable Energy projects including 6 nos. Solar projects were sanctioned with total project cost of Rs 621.06 crore and loan assistance of Rs 390.71 crore.
In September 17, 2010, Reserve Bank of India (RBI) categorized the company as an Infrastructure Finance Company (IFC). In December 2010, the company's subsidiary REC Transmission Projects Company Ltd sold 50,000 shares held in Raichur Sholapur Transmission Company Ltd to consortium of Patel engineering Ltd, Simplex Infrastructure Ltd and BS TransComm Ltd for a consideration of Rs 18.89 crore. In April 21, 2011, Vemagiri Transmission System Ltd (a wholly owned subsidiary of RECTPCL) was incorporated in respect of Transmission System associated with IPPs of Vemagiri Area: Package A.
The company received India Pride Award 2010 for being adjudged 'The Best NBFC' and also Third DSIJ Award 2010-11 - 'Speed King' for fastest growing PSUs across Maharatnas, Navratnas & Miniratnas. The company also featured in Dun & Bradstreet's India's Top PSUs 2011.
During 2012, the corporation sought the approval of Reserve Bank of India (RBI) for issuing bonds to raise up to USD 500 million. The company was awarded India Today - PSUs Awards 2014 for Best HR Practices. During the year, the company Signed MoU with Ministry of Power for the Financial Year 2014-15.
In 2015, the corporation has signed two separate agreements with Andhra Pradesh Power Generation Corporation Limited and Transmission Corporation of Andhra Pradesh Limited. During the year, the Corporation incorporated three Project Specific Special Purpose Vehicles (SPVs), as Subsidiary Companies of Rural Electrification Corporation Limited.
The Board of Directors of REC at its meeting held on 11 August 2016 recommended the issue of bonus shares in the ratio of 1:1.
MOUs were signed between REC Limited and APGENCO, APTRANSCO and AP DISCOMS on 27 January 2017 for extending a financial assistance to the tune of Rs 60000 crore to the power utilities in Andhra Pradesh for the next five years (till March 2022). As per the MOU, APGENCO can avail debt of Rs 40000 crore for generation projects and other loan requirements. APTRANSCO can avail a debt of Rs 10000 crore for transmission system strengthening, augmentation, upgradation, new transmission, power evacuation, R&M projects, etc. in the upcoming capital region and other districts of Andhra Pradesh. APEPDCL and ADSPDCL can avail a debt of Rs 10000 crore for implementation of Distribution projects in the state for strengthening, augmentation, upgradation of distribution infrastructure, sub-transmission system, new distribution, under-ground cabling works, R&M works, works under DDUJGY & IPDS, implementation of smart grid, smart meters, creation of distribution infrastructure for agricultural services, conversion of conventional pump sets into solar pump sets, etc. Apart from financial assistance power utilities have agreed to avail consultancy and management services from REC's subsidiaries for their various activities/projects for the next five years.
Loan agreements were signed between REC and TANGEDCO, TANTRANSCO for financial assistance of Rs 6890 crore on 28 January 2017 in Chennai for implementation of 1X 800 MW super critical thermal power plant at North Chennai, renovation and modernisation of TANGEDCO' s existing thermal power plants and establishment of new 765 KV, 400 KV substations in and around Chennai.
On 6 February 2017, REC announced that it has entered into Memorandums of Understanding (MoUs) with Karnataka Power Corporation Limited (KPCL) and Bangalore Electricity Supply Company Limited (BESCOM) for extending financial assistance to the tune of Rs 39121 crore for the next five years (i.e. till March 2022); i.e. financial assistance upto Rs 27121 crore to KPCL and upto Rs 12000 crore to BESCOM.
On 20 February 2017, REC announced that it has entered into Memorandums of Understanding (MoUs) with Jharkhand Bijli Vitran Nigam Limited (JBVNL) and Jharkhand Urja Sancharan Nigam Limited (JUSNL) for extending financial assistance to the tune of Rs 15150 crore; i.e. financial assistance upto Rs 8150 crore to JBVNL and upto Rs 7000 crore to JUSNL.
On 23 March 2017, REC announced that it has entered into Memorandum of Understanding (MoU) with Damodar Valley Corporation (DVC) for extending financial assistance to the tune of Rs 4650 crore for ongoing and upcoming projects of DVC.
On 5 April 2017, REC announced that its wholly owned subsidiary REC Transmission Projects Company Limited has handed over project specific Special Purpose Vehicles (SPV) namely NER-II Transmission Limited to M/s Sterlite Grid 4 Limited on 31 March 2017.
On 15 May 2017, REC announced that the company has entered into Memorandums of Understanding (MoUs) with Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO) for extending financial assistance to the tune of Rs 85723 crore, i.e. financial assistance upto Rs 60063 crore to TANGEDCO and upto Rs 25660 crore to TANTRANSCO. The MoUs are non-binding in nature and the financial assistance is subject to appraisal of the proposal(s) to be submitted by the respective entities to REC and approval of Competent Authority.
On 30 May 2017, REC reported its highest ever annual net profit of Rs 6246 crore for the financial year 2016-17.
On 30 June 2017, REC's Green Bond was listed on the London Stock Exchange. REC launched its maiden USD Green Bonds to become the first Indian PSU corporate to launch Green Bonds denominated in US Dollars, against the backdrop of green energy's enormous potential in the Indian power sector and the Indian Government's thrust on developing this space.
On 24 August 2017, REC signed a Memorandum of Understanding (MoU) extending a term loan worth Rs 13000 crore to Maharashtra State Power Generation Company Limited ( Mahagenco) for generation projects, FGD systems, STP, working capital and special loan requirements.
REC and Patratu Vidyut Utpadan Nigam Limited (PVUNL) signed a loan agreement on 14 November 2017 for establishing 3x800 MW Patratu Super Thermal Power Project Phase-I in Jharkhand. The project cost of Rs 18668 crore is funded in debt: equity ratio of 75:25 and Rs 14000 crore (entire debt component of project) is sanctioned by REC as sole lender for the project.
With a view to have better operational efficiency and to reap the benefits of higher capital base, pooled resources and to create one big consultancy firm, the Board of Directors of REC at its meeting held on 6 February 2018 approved the Scheme of Amalgamation of both wholly owned subsidiaries of the company viz. REC Transmission Projects Company Limited (Transferor Company) and REC Power Distribution Company Limited (Transferee Company).
REC concluded a USD 400 million Reg S bonds deal in London on 11 December 2007 for refinancing the existing ECB. The bond was priced at 115 basis points over three years US Treasury.
On 12 January 2018, REC announced that it has signed a loan agreement of Rs 10453 crore with TANGEDCO for setting up of TANGEDCO's Udangudi Stage-I, 2x660 MW Coal based Supercritical Thermal Power Project in Tuticorin District of Tamil Nadu. The loan assistance from REC will not only improve the power infrastructure of the state utilities but will also improve their financial and operational performance.
On 16 January 2018, REC Transmission Projects Company Limited (RECTPCL), a wholly owned subsidiary of Rural Electrification Corporation Ltd (REC), handed over project specific Special Purpose Vehicle (SPV) namely ERSS XXI Transmission Limited to M/s Power Grid Corporation of India Limited (PGCIL) on 12 January 2017.
On 15 March 2018, REC announced that it has successfully priced 10-year USD Reg-S Bond at a coupon of 4.625% and raised USD 300 million. The issuance received an excellent response with order book of more than USD 900 million. The net proceeds will be used for power sector development.
During the financial year 2019-20, Company sanctioned 84 nos. of Generation / R&M / other loans including 9 nos. of additional loans with total loan assistance of ?55,811.89 crore, including consortium financing with other financial institutions.
During the financial year 2019-20, Company sanctioned 17 nos. of Renewable Energy projects with installed generation capacity aggregating to 1,754 MW, with total loan assistance of Rs. 7,026.33 crore. Out of the same, 7 were solar photo-voltaic projects aggregating 917 MW, another 7 were wind energy projects aggregating 837 MW, 1 was procurement and installation of Turbine & Generator unit for a small hydro project, 1 was for DDG component of DDUGJY works and 1 loan was to a State DISCOM for meeting its renewable purchase obligations.
During the financial year 2019-20, the Company completed commissioning of sub-stations including augmentation: 1,729 nos, HT Lines feeder segregation (including new 11 kV lines): 1,97,019 cKm, LT Lines: 4,61,875 cKm, Commissioning of Distribution Transformers: 4,96,181 nos., Installation of consumer meters: 45,53,651 nos. and Metering of Distribution Transformer & Feeders: 14,589 nos.
During the financial year 2019-20, the Company sanctioned total loan assistance of Rs 1,10,907.99 crore towards various power sector
projects/schemes. The same included Rs 55,811.89 crore sanctioned towards generation projects, Rs 7,026.33 crore towards renewable energy projects, Rs 41,604.77 crore towards T&D projects and Rs 6,465.00 crore towards short term, medium term & other loans. Further, the Company disbursed a total loan amount of Rs 75,666.95 crore in the financial year 2019-20. The same included Rs 27,490.87 crore towards generation projects, Rs 5,699.09 crore towards renewable energy projects, Rs 30,856.19 crore towards T&D projects, Rs 6,390.00 crore towards short term, medium term & other loans and Rs 5,230.80 crore of counter-part funding under DDUGJY including DDG (Decentralized Distributed Generation) and SAUBHAGYA schemes. Further, grant/subsidy of Rs 6,473.88 crore provided by the Government of India was also disbursed to various states/implementing agencies during the financial year 2019-20 under the DDUGJY, DDUGJY-DDG and SAUBHAGYA schemes.
50 MW Wind Power Project of Renew Group in Karnataka was financed by REC in FY'19-20. 150 MW Solar Power Project of Avaada Group was financed by REC in Pavagada Solar Park in FY 2019-20.
During the financial year 2020-21, Company sanctioned total loan assistance of Rs 1,54,820.87 crore towards various power sector
projects/schemes. The same included Rs. 39,613.53 crore towards generation projects, Rs. 17,171.34 crore towards renewable energy
projects, Rs. 19,492.75 crore towards T&D projects, Rs. 60,191.36 crore towards liquidity infusion scheme of the Government of India under Atmanirbhar Bharat and Rs. 4,750.00 crore towards other loans including short-term and medium-term loans. Further, outstanding dues of Rs. 13,601.89 crore, on which moratorium was extended pursuant to RBI directive and Board approved moratorium policy, are also included in the above sanctions mentioned.
During the financial year 2020-21, Company disbursed a total amount of Rs 92,987.49 crore, which included Rs 25,929.76 crore towards generation projects, Rs 3,265.13 crore towards renewable energy projects, Rs 19,301.22 crore towards T&D projects, Rs 39,115.50 crore towards liquidity infusion scheme of the Government of India under Atmanirbhar Bharat and Rs 3,900.79 crore towards other loans including short term-and medium-term loans, besides Rs 1,475.09 crore of counter-part funding under DDUGJY, DDUGJY-DDG and SAUBHAGYA schemes of the Government of India. Apart from the above, your Company also disbursed total subsidy of Rs 4,940.62 crore from the Government of India, i.e., Rs 4,527.01 crore under DDUGJY, Rs 25.49 crore under DDUGJY-DDG and Rs 388.12 crore under the SAUBHAGYA scheme. Apart from the above, the Company also disbursed total subsidy of Rs. 4,940.62 crore from the Government of India during the financial year 2020-21, i.e., Rs. 4,527.01 crore under DDUGJY, Rs. 25.49 crore under DDUGJY-DDG and Rs. 388.12 crore under SAUBHAGYA schemes.
During the financial year 2020-21, two wholly owned subsidiaries of the Company were amalgamated to create a single entity, to
achieve better synergies in operations, greater access to different market segments and to reap the benefits of higher capital base
and pooled resources. The amalgamated entity is now known as REC Power Development and Consultancy Limited (formerly REC
Power Distribution Company Limited, RECPDCL). In FY-2020-21, Company financed 300 MW solar power project of Avaada Energy Private Limited in Pavagada Solar Park, Karnataka.
During the financial year 2020-21, the Company sanctioned 23 nos. of Generation, R&M (Renovation & Modernization) and other loans, including 2 nos. of additional loans with total loan assistance of Rs 39,613.53 crore, including consortium financing with other financial institutions. In addition to above, moratorium was extended on outstanding dues of Rs 4,687.80 crore of generation loans during the year under review, pursuant to Board approved moratorium policy. These are also counted in the sanctions. It financed Pump-house of Purushothapatanam Lift Irrigation Scheme Stage-I at Andhra Pradesh and 252 MW Wind Power Project of Vivid Solaire Energy Private Limited in Tuticorin, Tamil Nadu. REC also financed 2x60 MW Vyasi Hydro-electric Project in Dehradun, Uttarakhand.
During the financial year 2020-21, Company sanctioned 40 nos. of Renewable Energy projects with installed generation capacity aggregating to 3,759 MW, with total loan assistance of Rs 17,171.34 crore. The above loans included 20 solar photo-voltaic projects with aggregate capacity of 2,902 MW, 4 wind energy projects with aggregate capacity of 706 MW, 1 solar wind hybrid project of 150 MW capacity, 1 solar module and cell manufacturing project of 2000 MWp per annum capacity, 3 solarization projects under KUSUM scheme, 1 small hydro project of 1 MW, 6 projects for repair and maintenance of hydel plants and 4 E-vehicle projects for procurement of total 902 E-buses. In addition to above, moratorium was extended on outstanding dues of Rs 1,040.60 crore of renewable energy loans during the year under review, pursuant to Board approved moratorium policy.
During the financial year 2020-21, Company sanctioned Transmission & Distribution (T&D) schemes and projects involving a total loan assistance of Rs. 19,492.75 crore, including loan towards inter-state/intra-state transmission projects in private sector. The loans under T&D category included loans towards primary power evacuation schemes associated with generating plants, system improvement schemes, schemes for procurement and installation of equipment/material like meters, transformers, conductors, tower material, cables etc. Further, it also included loan component under Government-approved schemes like DDUGJY, IPDS and SAUBHAGYA and infrastructure schemes for providing electricity access to various categories of consumers, including agricultural consumers.
During the financial year 2020-21, REC completed works under the 3 schemes of Government of India i.e., DDUGJY, PMDP-2015 for J&K and SAUBHAGYA such as, metering of distribution transformers (nos.): 61,994 nos., Feeder separation (including 11 kV lines) cKm: 30,668 cKm; Metering of 11 kV feeders (nos.): 1,360 nos., and commissioning of sub-stations (including augmentation) (nos.): 570 nos. In addition, 2,385 ckm 33 kV lines were installed, 54,964 cKm of LT lines were installed, 66,017 nos. of distribution transformers were commissioned and 15,20,550 nos. of consumer meters were installed. Apart from these, electrification of 4.93 lakh households was achieved under SAUBHAGYA.
During the financial year 2020-21, REC had two wholly owned subsidiaries viz., REC Power Distribution Company Limited (later renamed as REC Power Development and Consultancy Limited w.e.f. July 16, 2021) (RECPDCL) and REC Transmission Projects Company Limited (RECTPCL). Accordingly, RECTPCL (Transferor Company) was amalgamated with RECPDCL (Transferee Company) through the Scheme of Amalgamation which became effective from February 6, 2021.
In FY' 2021-22, REC financed 350 MW Solar PV project of Avaada Energy in Bikaner, Rajasthan. It sanctioned loans worth Rs. 54,421.76 crore. The cumulative loans sanctioned since inception till March 31, 2022, were Rs. 13,08,992.08 crore. It sanctioned 53 nos. of loans towards generation projects including hydropower projects, implementation of pollution control equipment, renovation & modernization schemes, irrigation projects etc. and sanctioned total loan assistance of Rs. 16,089.15 crore. It sanctioned 15 nos. of Renewable Energy projects with installed generation capacity aggregating to 1,609 MW, with total loan assistance of Rs. 14,733.52 crore.
During financial year 2022-23, the Company had issued bonus shares to its shareholders in the month of August 2022, in the ratio of 1:3, i.e., one (1) bonus equity share of Rs 10/- each fully paid-up for every 3 existing equity shares of Rs 10/- each fully paid-up resulting in issuance of 65,83,06,000 fully paid-up new equity shares of Rs 10/- each. This increased the issued and paid-up share capital to Rs 2,633.22 crore, comprising of 2,63,32,24,000 equity shares of Rs 10/- each.
As on March 31, 2023, Power Finance Corporation Limited, a Government of India undertaking, held 52.63% of the paid-up equity share capital of the Company, comprising of 1,38,59,93,662 equity shares of Rs 10/- each and the balance 47.37% paid-up equity share capital was held by public shareholders.
In April 2023, REC raised USD 750 Million Green Bonds and resulting, the bonds got listed at IFSC Stock exchanges, i.e., India INX and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
During financial year 2022-23, Company graded 143 utilities (excluding State Government), out of which 20 utilities were graded as A++, 38 as A+, 30 as A, 19 as B, 32 utilities as C category and 1 utility as D category. It sanctioned 76 nos. of loans towards generation projects including hydropower projects, implementation of pollution control equipment, renovation & modernization schemes, irrigation projects etc. and sanctioned total loan assistance of Rs 34,529.33 crore. It sanctioned 35 nos. of Renewable Energy projects with installed generation capacity aggregating to 6,488 MW & some infra projects, with total loan assistance of Rs 21,371.11 crore. It sanctioned 408 nos. of Transmission & Distribution (T&D) schemes/ projects involving a total loan assistance of Rs 1,22,050 crore including projects under RDSS, LPS and RBPF schemes of the Government of India.
During the financial year 2022-23, the Company disbursed an amount of Rs 96,846.30 crore, including Rs 25,049.27 crore towards generation projects, Rs 12,984.89 crore towards renewable energy projects, Rs 27,502.84 crore towards T&D projects, Rs 1,453.29 crore towards Power Infrastructure projects and Rs 29,621.37 crore towards other loans including short term, RBPF etc.
An aggregate 8.03 GW rooftop solar capacity was reported installed in the country as on February 28, 2023.
REC Ltd
Directors Reports
REC Ltd
Company Background
| Incorporation Year | 1969 |
| Registered Office | Core-4 SCOPE Complex,7 Lodi Road
New Delhi,New Delhi-110003 |
| Telephone | 91-11-24365161,Managing Director |
| Fax | 91-11-24360644 |
Vivek Kumar DewanganVivek Kumar Dewangan| Company Secretary | J S Amitabh |
| Auditor | S K Mittal & Co/O P Bagla & Co LLP/SCV & Co LLP |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
REC Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Vivek Kumar Dewangan | Chairman & Managing Director | 2023 |
| VIJAY KUMAR SINGH | Executive Director (Technical) | 2023 |
| AJOY CHOUDHURY | Executive Director (Finance) | 2023 |
| Piyush Singh | Nominee (Govt) | 2023 |
| MANOJ SHARMA | Nominee | 2023 |
| Gambheer Singh | Independent Director | 2023 |
| Manoj Manohar Pande | Independent Director | 2023 |
| Durgesh Nandini Tiwari | Independent Director | 2023 |
| Narayanan Thirupathy | Independent Director | 2023 |
| Parminder Chopra | Nominee | 2023 |
| J S Amitabh | Company Secretary | 2023 |
REC Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_200 |
| BSEDOLLEX |
| BSE_PSU |
| NIFTYJR |
| CNX500 |
| BSEMID |
| CNX100 |
| CNX_PSE |
| CNX200 |
| CNXFINANCE |
| CNXDIVIDEN |
| CNXALPHAIN |
| BSEINFRA |
| NFT100EQWT |
| BSEALLCAP |
| BSEFINANCE |
| BSEMIDSELE |
| BSEBHARA22 |
| MID150 |
| LMI250 |
| MSL400 |
| BSEEVI |
| BSEMOI |
| NFTYLM250 |
| NFTYFS2550 |
| NFTY200M30 |
| NF500M5025 |
| NFTYTOTMKT |
| NFTY200A30 |
| NFMC150M50 |
REC Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest | Rs. | 0 | 0 | 0 | 38187.29 |
| fee income | Rs. | 0 | 0 | 0 | 572.82 |
| Net Gain on Fair Value Changes | Rs. | 0 | 0 | 0 | 346.57 |
| Profit on Sale of Investments | Rs. | 0 | 0 | 0 | 29.01 |
| Dividend | Rs. | 0 | 0 | 0 | 26.64 |
| Fees | Rs. | 0 | 0 | 0 | 6.57 |
| Swapping Premium | Rs. | 0 | 0 | 0 | 0 |
| Agency Charges | Rs. | 0 | 0 | 0 | 0 |
| prepayment premium | Rs. | 0 | 0 | 0 | 0 |
| Lease Revenue | Rs. | 0 | 0 | 0 | 0 |