Rural Electrification Corporation

Rural Electrification Corporation Limited
Native name
 ग्रामीण विद्युतीकरण निगम लिमिटेड
State-owned enterprise
Traded as
Founded New Delhi, Delhi, India (25 July 1969 (1969-07-25))[1]
Headquarters Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi, Delhi, India[2]
Area served
 India
Key people
 P.V. Ramesh Babu (Chairman & MD)
Revenue Increase ₹105.09 billion (US$1.6 billion) (2011–12)
Increase ₹75.91 billion (US$1.2 billion) (2011–12)
Profit Increase ₹28.17 billion (US$440 million) (2011–12)
Total assets Increase ₹1,087.29 billion (US$17 billion) (2011–12)
Total equity Increase ₹147.45 billion (US$2.3 billion)[3] (2011–12)
Owner Government of India
Number of employees
 600 (2011–12)
Subsidiaries
  • REC Transmission Projects Company Limited (RECTPCL)
  • REC Power Distribution Company Limited (RECPDCL)
Website recindia.nic.in

Rural Electrification Corporation Limited (REC) is a leading public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India. It operate's through a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi. The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.

REC is a Navratna Company[4] functioning under the purview of the Ministry of Power. The company is listed on both National Stock Exchange and Bombay Stock Exchange.

The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance.[5] The company is also among the Forbes Global 2000 companies for 2010.[6]

IPO & FPO

The Company was listed on the National Stock Exchange and the Bombay Stock Exchange on 12 March 2008. REC went for Initial Public Offer of 156,120,000 Equity Shares in February 2008 which was oversubscribed by about 27 times, raising a total amount of ₹819 crores. Further Public Offer of 171,732,000 equity shares was made in February 2010. The issue was oversubscribed by 3.14 times, raising a total of ₹26.47 billion

Rural electrification status

As of 31 May 2017, 99.32% of 597,464 villages in India are electrified.[7] Of those who did have access to electricity in rural India, the supply was intermittent and unreliable.[8]

Rural electrification rate State (Electrification rate, Unelectrified villages)[9]
100% 13 states and all 7 union territories
99.00-99.99% Rajasthan (99.99%, 1), Nagaland (99.86%, 2), West Bengal (99.99%, 5), Uttar Pradesh (99.99%, 6), Uttarakhand (99.67%, 52), Karnataka (99.93%, 19), Madhya Pradesh (99.91%, 49), Bihar (99.21%, 307)
98.00-98.99% Odisha (98.95%, 502), Chhattisgarh (98.43%, 307), Jammu & Kashmir (98.39%, 102), Jharkhand (98.21%, 529)
96.00-97.99% Assam (97.98%, 513), Mizoram (97.44%, 18), Manipur (97.23%, 66), Meghalaya (96.53%, 224)
Below 80% Arunachal Pradesh (76.72%, 1224)

GARV APP

GARV APP is an application developed and maintained by REC (Rural Electrification Corporation), incepted to aid the Grameen Vidyutikaran Mission running under DDUGJY (Deen Dayal Upadhyaya Gram Jyoti Yojana). The App “GARV” (Grameen Vidyutikaran), which provides real-time updates on electrification status of 18452 UE villages, was launched on 14th Oct, 2015 by the Hon’ble Power Minister Shri. Piyush Goyal. The mobile app is accessible to all stakeholders including the general public at large.

History[10]

Time-line

1969 Incorporated as a Company under the Companies Act, 1956
1992 Notified as a "Public Financial Institution"
1998 "Non-banking Financial Company (NBFC)” status by RBI
2002 "Mini Ratna Grade-I" Status
2008 "Navratna" Status,[11]
IPO of shares and partial divestment
2010 "Infrastructure Finance Company (IFC)[12][13][14]” status by RBI,
FPO of shares with 33.2% being public held

Early years

REC was set up in July 1969, in the backdrop of a critical drought situation facing India in the late sixties. The company’s initial mandate was mainly to help State Electricity Boards energise pump-sets across the country to boost agriculture and overcome the crippling impact of three successive years of deficient monsoons. The company also provided finance to accelerate the pace of rural electrification in the overall context of planned programmes for increased agricultural production. Besides finance, REC also offered appraising, consultancy, technical support and monitoring of projects, to assist State Electricity Boards/Power Utilities, Rural Electric Cooperatives and other such institutions.

Post-Liberalised India (1990s)

Liberalisation by the Government of India (GoI) in 1991 saw introduction of amendments to existing laws and reform measures enabling the private sector to participate in large-scale in manufacturing industry, services industry and infrastructure. Sectors like power, airports, seaports, roadways, projects were identified for private participation, and nodal agencies were set up to do the initial spade work and later hand over such projects to private players through competitive bidding routes. In April 2006, GoI identified 14 transmission projects worth ₹200 billion for development by 2012. REC was identified as one of the two GoI-appointed nodal agencies for transferring identified projects to private developers. REC also started extending loans to manufacturers of T&D equipment.

2000–Current

Till 2000, REC focused on the Transmission and Distribution aspect of power, with projects for household electrification in rural and semi-urban areas, area electrification in tribal/ dalit areas, intensive electrification, and system improvement projects based on strengthening and improving transmission, sub transmission and distribution systems. REC’s portfolio of Generation projects constituted mainly Mini/Micro Generation Projects up to 25MW capacity till 2000. In June 2002, the mandate of REC was expanded to include financing of all generation projects without limit on size or location. Today, financing of Generation projects has become a major thrust-area of operations for REC, also attracting majority of its private sector borrowers.

Since 2005, REC has been appointed nodal agency by Ministry of Power for Government of India scheme Rajiv Gandhi Grameen Vidyutikaran Yojana[15][16] aimed at building rural electricity infrastructure and household electrification towards the National Common Minimum Programme goal of access to electricity for all. Under the scheme, 90% capital subsidy is provided by Government of India for overall cost of projects. Cumulatively till FY10, works in 190,858 villages have been completed and free connections to over 10 million below poverty line (BPL) households have been released.

Central Institute for Rural Electrification (CIRE)[17]

In 1979, REC established a national training institute in Hyderabad for the development of techno-managerial skill and efficiency in State Electricity Boards (SEBs), Distribution Companies, Rural Electric Cooperatives and other Power Utilities, and also to conduct in-house training programmes for REC’s employees. CIRE also served as a platform for association with other institutions towards a common goal of Rural Electrification (RE) and rural energy development.

Today, CIRE conducts regular programmes on various aspects of Transmission and Distribution for national and international executives in the power sector, including seminars participated by both private and public utilities. Programmes focus on adoption of innovative and cost effective modern technologies, training in both conventional and non-conventional energy areas and practical demonstrations via an in-house Energy Park.

Energy Efficiency Services Limited (EESL)

EESL is a joint venture (JV) with 4 power PSUs – REC, Powergrid, NTPC, and PFC for implementing energy efficiency projects, promoting usage of energy efficient appliances, promoting the concept of Energy Service Companies (ESCOs) etc.

Indian Energy Exchange (IEX)

REC is an equity partner in Indian Energy Exchange (IEX), India’s first nationwide, automated, and online electricity trading platform (power exchange/ electricity market), among other reputed investors like IDFC, Adani, Reliance Energy, Lanco and Tata Power.

References

  1. ↑ "Profile". recindia.nic.in. Retrieved 7 November 2016.
  2. ↑ "Contact Us". recindia.nic.in. Retrieved 7 November 2016.
  3. ↑ "Rural Electrification Corporation" (PDF). rec.nic.in. Retrieved 16 July 2012.
  4. ↑ "List of Navratna CPSEs". Dpe.nic.in. 30 November 2010. Retrieved 3 February 2011.
  5. ↑ "The Global Banking 500 League Table". Brandirectory. Retrieved 3 February 2011.
  6. ↑ "The Global 2000". Forbes.com. 1 March 2010. Retrieved 3 February 2011.
  7. ↑ "Progress report of village electrification as on 31-05-2017" (PDF). CEA.
  8. ↑ "Government decides to electrify 5.98 crore unelectrified households by December 2018". Retrieved 20 June 2016.
  9. ↑ http://cea.nic.in/reports/monthly/electrification/2017/village_electrification-05.pdf
  10. ↑ http://www.ieema.org/pdfs/Annual%20Convention28-32634243746695820000.pdf
  11. ↑ "PSU INDIA – The first server to Public Sector Units, servers to the nation : PSU News, Policy News, Vendor news, PSU Stock News, PSU stock market, PSU Tenders, PSU Jobs, Corporate Social Responsibility from the PSU INDIA". Psuindia.in. Retrieved 3 February 2011.
  12. ↑ "IFC status to help REC lend more to private sector". Business-standard.com. 21 September 2010. Retrieved 3 February 2011.
  13. ↑ "IFC_STATUS" (PDF). recindia.nic.in. Retrieved 3 February 2011.
  14. ↑ "REC gets additional lending exposure with IFC status". Psuindia.in. 20 September 2010. Retrieved 3 February 2011.
  15. ↑ "Rajiv Gandhi Grameen Vidyutikaran Yojana". Rggvy.gov.in. Retrieved 3 February 2011.
  16. ↑ "Record" (PDF). powermin.nic.in. Retrieved 3 February 2011.
  17. ↑ "About_CIRE" (PDF). recindia.nic.in. Retrieved 3 February 2011.
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