Business Standard

REC plans Rs 7,500 cr mop-up via bonds

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BS Reporter Mumbai
Rural Electrification Corporation (REC) is planning to raise Rs 7,500 crore from the bond market at market rates to finance the government's rural electrification drive.
 
The borrowing programme is expected to begin by the end of this year, REC Chairman and Managing Director Anil Kumar Lakhina said here on the sidelines of an energy conference organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).
 
REC expects to tap around Rs 1,000 crore a month from the bond market over the next five months. It had chalked out a borrowing programme for Rs 10,000-12,000 crore and has already raised Rs 4,500 crore under 54 EC. The government had put a cap on REC borrowing under the scheme at Rs 4,500 crore.
 
Out of the total borrowing for this year, it has already pledged to disburse around Rs 6,000 crore for various franchisee programmes, including incentives for entrepreneurs in rural power distribution, Lakhina said. Last year, REC had borrowed Rs 8,700 crore and disbursed Rs 8,500 crore.
 
REC has been incentivising state electricity boards (SEBs)to outsource functions ranging from distribution of power in remote rural areas to bill collection, repairs and maintenance of power lines in a bid to reduce accumulated techincal and commercial (AT&C) losses and boost the financial health of the SEBs.

 
 

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First Published: Oct 12 2006 | 12:00 AM IST

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