State-run Rural Electrification Corporation (REC), which finances rural power projects, plans to give loans to the tune of Rs 15,000 crore by March, 2010.
"Loans worth Rs 15,000 crore are likely to be sanctioned by the end of the financial year (2009-10)," a company official said.
REC has so far sanctioned Rs 29,000 crore loans to various power projects in the country.
"Out of the total (Rs 29,000 crore), Rs 19,000 crore loans have been given to power generation projects and Rs 10,000 crore to transmission and distribution projects," the official said.
REC, which is likely to hit the capital market with its follow-on public offer (FPO) next month, may use the proceeds from the FPO to finance the power projects.
The company is hoping to raise Rs 3,300 crore through 20 per cent share sale. The REC offer would comprise 5 per cent stake dilution by the government and issuance of 15 per cent fresh equity.
Post FPO, the government's share in REC would come down to nearly 66 per cent from the present 81.82 per cent.
