REC Limited: Difference between revisions

REC Limited
	REC corporate office on Lodhi Road, New Delhi.
Native name	आर ई सी लिमिटेड
Formerly	Rural Electrification Corporation Limited
Company type	Subsidiary of Power Finance Corporation Limited
Traded as	BSE: 532955; NSE: RECLTD;
Industry	Infrastructure finance
Founded	25 July 1969; 55 years ago; New Delhi, Delhi, India
Headquarters	Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi, Delhi, India
Area served	India
Key people	Vivek Kumar Dewagan (CMD)
Revenue	₹47,571.23 crore (US$5.7 billion) (2024)
Operating income	₹17,959.94 crore (US$2.2 billion) (2024)
Net income	₹14,145.46 crore (US$1.7 billion) (2024)
Total assets	₹548,191.09 crore (US$66 billion) (2024)
Total equity	₹69,350.25 crore (US$8.3 billion) (2024)
Owner	Power Finance Corporation Limited, Ministry of Power, Government of India
Number of employees	487 (March 2019)
Subsidiaries	REC Transmission Projects Company Limited (RECTPCL); REC Power Distribution Company Limited (RECPDCL);
Website	RECIndia.nic.in

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REC Limited, formerly Rural Electrification Corporation Limited, of which Power Finance Corporation Limited (PFC) is the holding company of that is under the ownership of the Ministry of Power, the Government of India. It finances and promotes power projects across India. The PSU provides loans to Central/State Sector Power Utilities in the country, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.^[4] On 20 March 2019, PFC signed an agreement to acquire a 52.63% controlling stake in REC for ₹14,500 crore (US$1.7 billion).^[5] On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020.^[6]^[5] However, REC has maintained that merging PFC-REC is no longer an option.^[7]

Recently, REC has secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1 September 2023. The position inclusion of REC in MSCI^[8] solidified REC's status as a leading player in the financial sector and market, and opened up new horizons to expand its reach and influence on a global scale.

Further, REC has also diversified^[9] into non-power infrastructure & logistics sector to cover areas such as airports, metro, railways, ports, bridges, etc. REC leverages its pan-India network of 22 regional offices for development and conduct of business. REC looking to increase share of green energy in its loan portfolio to 30% by 2030^[10].

Business operations

REC is the 12th Maharatna Company^[11] functioning under the purview of the Ministry of Power. The company is listed on both the National Stock Exchange and the Bombay Stock Exchange. Business operations in India are supported by a network of 22 Regional Offices, with its corporate headquarters at Gurugram and a registered office in New Delhi. :^[12]

Services

The company is primarily engaged in providing finance for rural electrification projects across India and provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. The company sanctions loan as a sole lender or co-lender or in consortium with or without the status of lead financer. It also provides consultancy, project monitoring and financial/ technical appraisal support for projects, also in the role of nodal agency for Government of India schemes or projects. It engages in ascertaining financial requirements of power utilities in the country in the T&D sector along with appraising T&D schemes for financing. REC has financed T&D schemes for system improvement, intensive electrification, pump-set energisation and APDRP Programme. The company is also actively involved in physical as well as financial monitoring of T&D schemes.

REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for €100M (approximately ₹6000M) with KfW under Indo-German Development Cooperation for financing renewable energy power projects at concessional rates of interest. Eligible projects include solar, wind, small hydro, biomass power, and cogeneration power & hybrid projects

GARV APP is an application developed and maintained by REC, 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 14 October 2015 The mobile app is accessible to all stakeholders including the general public at large.

Finances

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

The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance.^[13] The company is also among the Forbes Global 2000 companies for 2010.^[14] Domestic debt instruments of REC are assigned the highest rating "AAA" by credit rating agencies CRISIL, Fitch and ICRA. Moody’s and Fitch have rated its international credit rating at par with India’s sovereign rating.

International collaborations have included past tie-ups for External Commercial Borrowings with Standard Chartered Bank (London), DEPFA Investment Bank Limited (Cyprus)^[15] etc. as well as current tie-ups with KfW (Germany) and Japan International Cooperation Agency (Japan) under Official Development Assistance. As an IFC, REC can also issue Infrastructure Bonds and raise funds up to US$500M through External Commercial Borrowing in a year.

History

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 [1] Archived 15 July 2013 at the Wayback Machine for Government of India scheme Rajiv Gandhi Grameen Vidyutikaran Yojana^[16]^[17] 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. The REC is the nodal agency under the newly launched SAUBHAGYA Yojana by the present Modi government.^[18]

REC Institute of Power Management & Training (RECIPMT)

In 1979, REC^[19] 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, RECIPMT 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.^{[citation needed]}

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)[2], 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

^ "Profile". recindia.nic.in. Retrieved 7 November 2016.
^ "Contact Us". recindia.nic.in. Retrieved 7 November 2016.
^ ^a ^b ^c ^d ^e "Balance Sheet 31.03.2024".
^ "Cabinet Approves Sale of Government's Stake in REC to PFC". 6 December 2018.
^ ^a ^b "PFC to pay entire ₹14,500 crore for REC acquisition on Thursday". Livemint. 26 March 2019. Retrieved 29 March 2019.
^ "PFC completes REC acquisition, hopeful of merger in 2019-20 - Times of India". The Times of India. 28 March 2019. Retrieved 29 March 2019.
^ Goswami, Sweta (19 May 2023). "MC Exclusive | PFC-REC merger no longer an option: REC CMD".
^ "MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded". cnbctv18.com. 11 August 2023. Retrieved 31 August 2023.
^ Livemint (18 May 2023). "REC targets ₹2.4 trillion loan book in renewable energy portfolio by 2030". mint. Retrieved 31 August 2023.
^ Sharma, Shalini (18 May 2023). "REC looking to increase share of green energy in its loan portfolio to 30% by 2030: CMD". PSU Watch. Retrieved 31 August 2023.
^ "List of Navratna CPSEs". Dpe.nic.in. 30 November 2010. Archived from the original on 16 February 2011. Retrieved 3 February 2011.
^ "Archived copy" (PDF). Archived from the original (PDF) on 23 July 2011. Retrieved 19 January 2011.{{cite web}}: CS1 maint: archived copy as title (link)
^ "The Global Banking 500 League Table". Brandirectory. Archived from the original on 5 March 2016. Retrieved 3 February 2011.
^ "The Global 2000". Forbes.com. 1 March 2010. Retrieved 3 February 2011.
^ http://www.recindia.nic.in/download/Chairman_Speech06_07.pdf ^{[bare URL PDF]}
^ "Rajiv Gandhi Grameen Vidyutikaran Yojana". Rggvy.gov.in. Archived from the original on 21 July 2011. Retrieved 3 February 2011.
^ "Record" (PDF). powermin.nic.in. Retrieved 3 February 2011.
^ "Saubhagya | Government of India | Ministry of Power". powermin.gov.in. Retrieved 31 August 2023.
^ "RECIPMT: HYD - Welcome to RECIPMT". recipmt.com. Retrieved 3 February 2011.

External links

Official website

[1] "Profile". recindia.nic.in. Retrieved 7 November 2016.

[2] "Contact Us". recindia.nic.in. Retrieved 7 November 2016.

[Balance_Sheet_2024-3] "Balance Sheet 31.03.2024".

[4] "Cabinet Approves Sale of Government's Stake in REC to PFC". 6 December 2018.

[livemint.com-5] "PFC to pay entire ₹14,500 crore for REC acquisition on Thursday". Livemint. 26 March 2019. Retrieved 29 March 2019.

[6] "PFC completes REC acquisition, hopeful of merger in 2019-20 - Times of India". The Times of India. 28 March 2019. Retrieved 29 March 2019.

[7] Goswami, Sweta (19 May 2023). "MC Exclusive | PFC-REC merger no longer an option: REC CMD".

[8] "MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded". cnbctv18.com. 11 August 2023. Retrieved 31 August 2023.

[9] Livemint (18 May 2023). "REC targets ₹2.4 trillion loan book in renewable energy portfolio by 2030". mint. Retrieved 31 August 2023.

[10] Sharma, Shalini (18 May 2023). "REC looking to increase share of green energy in its loan portfolio to 30% by 2030: CMD". PSU Watch. Retrieved 31 August 2023.

[11] "List of Navratna CPSEs". Dpe.nic.in. 30 November 2010. Archived from the original on 16 February 2011. Retrieved 3 February 2011.

[12] "Archived copy" (PDF). Archived from the original (PDF) on 23 July 2011. Retrieved 19 January 2011.{{cite web}}: CS1 maint: archived copy as title (link)

[13] "The Global Banking 500 League Table". Brandirectory. Archived from the original on 5 March 2016. Retrieved 3 February 2011.

[14] "The Global 2000". Forbes.com. 1 March 2010. Retrieved 3 February 2011.

[15] ttps://www.recindia.nic.in/download/Chairman_Speech06_07.pdf ^{[bare URL PDF]}

[16] "Rajiv Gandhi Grameen Vidyutikaran Yojana". Rggvy.gov.in. Archived from the original on 21 July 2011. Retrieved 3 February 2011.

[17] "Record" (PDF). powermin.nic.in. Retrieved 3 February 2011.

[18] "Saubhagya | Government of India | Ministry of Power". powermin.gov.in. Retrieved 31 August 2023.

[19] "RECIPMT: HYD - Welcome to RECIPMT". recipmt.com. Retrieved 3 February 2011.

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@@ Line 55: / Line 55: @@
 '''REC Limited''',  formerly '''Rural Electrification Corporation Limited''', of which [[Power Finance Corporation|Power Finance Corporation Limited]] (PFC) is the holding company of that is under the [[ownership]] of the [[Ministry of Power (India)|Ministry of Power]], the [[Government of India]]. It finances and promotes power projects across India. The PSU provides [[loan]]s to Central/State Sector Power Utilities in the country, [[Electricity sector in India#Government-owned power companies|State Electricity Boards]], Rural Electric Cooperatives, NGOs and Private Power Developers.<ref>{{cite web | url=https://www.bloombergquint.com/business/cabinet-approves-sale-of-governments-stake-in-rec-to-pfc#gs.X5793vg | title=Cabinet Approves Sale of Government's Stake in REC to PFC | date=6 December 2018 }}</ref> On 20 March 2019, PFC signed an agreement to acquire a 52.63% controlling stake in REC for {{INRConvert|14500|c}}.<ref name="livemint.com">{{cite web |title=PFC to pay entire ₹14,500 crore for REC acquisition on Thursday |url=https://www.livemint.com/companies/news/pfc-to-pay-entire-rs-14-500-crore-for-rec-acquisition-on-thursday-1553610521293.html |website=Livemint |access-date=29 March 2019 |language=en |date=26 March 2019}}</ref> On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020.<ref>{{cite news |title=PFC completes REC acquisition, hopeful of merger in 2019-20 - Times of India |url=https://timesofindia.indiatimes.com/business/india-business/pfc-completes-rec-acquisition-hopeful-of-merger-in-2019-20/articleshow/68616802.cms |website=The Times of India |date=28 March 2019 |access-date=29 March 2019}}</ref><ref name="livemint.com"/> However, REC has maintained that merging PFC-REC is no longer an option.<ref>{{Cite web |last=Goswami |first=Sweta |date=19 May 2023 |title=MC Exclusive {{!}} PFC-REC merger no longer an option: REC CMD |url=https://www.moneycontrol.com/news/interview/mc-exclusive-pfc-rec-merger-no-longer-an-option-rec-cmd-10625831.html }}</ref>
-Recently, REC has secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1st September 2023. The position [https://www.cnbctv18.com/market/msci-global-standard-index-review-pfc-rec-idfc-first-among-eight-included-acc-excluded-17500661.htm inclusion of REC in MSCI]<ref>{{Cite web |date=2023-08-11 |title=MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded |url=https://www.cnbctv18.com/market/msci-global-standard-index-review-pfc-rec-idfc-first-among-eight-included-acc-excluded-17500661.htm |access-date=2023-08-31 |website=cnbctv18.com |language=en}}</ref> solidified REC's status as a leading player in the financial sector and market, and opened up new horizons to expand its reach and influence on a global scale.
+Recently, REC has secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1 September 2023. The position [https://www.cnbctv18.com/market/msci-global-standard-index-review-pfc-rec-idfc-first-among-eight-included-acc-excluded-17500661.htm inclusion of REC in MSCI]<ref>{{Cite web |date=2023-08-11 |title=MSCI Global Standard Index Review: PFC, REC, IDFC First among eight inclusions, ACC excluded |url=https://www.cnbctv18.com/market/msci-global-standard-index-review-pfc-rec-idfc-first-among-eight-included-acc-excluded-17500661.htm |access-date=2023-08-31 |website=cnbctv18.com |language=en}}</ref> solidified REC's status as a leading player in the financial sector and market, and opened up new horizons to expand its reach and influence on a global scale.
 Further, REC has also [https://www.livemint.com/industry/energy/rec-targets-2-4-trillion-loan-book-in-renewable-energy-portfolio-by-2030-11684423837250.html diversified]<ref>{{Cite web |last=Livemint |date=2023-05-18 |title=REC targets ₹2.4 trillion loan book in renewable energy portfolio by 2030 |url=https://www.livemint.com/industry/energy/rec-targets-2-4-trillion-loan-book-in-renewable-energy-portfolio-by-2030-11684423837250.html |access-date=2023-08-31 |website=mint |language=en}}</ref> into non-power infrastructure & logistics sector to cover areas such as airports, metro, railways, ports, bridges, etc. REC leverages its pan-India network of 22 regional offices for development and conduct of business. <bdi>REC looking to increase share of green energy in its loan portfolio to 30% by 2030</bdi><ref>{{Cite web |last=Sharma |first=Shalini |date=2023-05-18 |title=REC looking to increase share of green energy in its loan portfolio to 30% by 2030: CMD |url=https://psuwatch.com/newsupdates/rec-looking-to-increase-share-of-green-energy-in-its-loan-portfolio-to-30-by-2030-cmd |access-date=2023-08-31 |website=PSU Watch |language=en}}</ref><bdi>.</bdi>
 ==Business operations==
-[[Image:REC Signage.JPG|thumb|right|265px]]
+[[File:REC Signage.JPG|thumb|right|265px]]
 REC is the 12th [[Maharatna|Maharatna Company]]<ref>{{cite web|url=http://dpe.nic.in/newsite/navmini.htm|title=List of Navratna CPSEs|date=30 November 2010|publisher=Dpe.nic.in|access-date=3 February 2011|url-status=dead|archive-url=https://web.archive.org/web/20110216041335/http://dpe.nic.in/newsite/navmini.htm|archive-date=16 February 2011|df=dmy-all}}</ref> functioning under the purview of the [[Ministry of Power (India)|Ministry of Power]]. The company is listed on both the [[National Stock Exchange of India|National Stock Exchange]] and the [[Bombay Stock Exchange]]. Business operations in India are supported by a network of 22 Regional Offices, with its corporate headquarters at Gurugram and a registered office in [[New Delhi]].  :<ref>{{Cite web |url=http://content.indiainfoline.com/Admin/ResearchPdf/384499217_LS_Power_Financing_Electrifying_India_220210.pdf |title=Archived copy |access-date=19 January 2011 |archive-date=23 July 2011 |archive-url=https://web.archive.org/web/20110723104252/http://content.indiainfoline.com/Admin/ResearchPdf/384499217_LS_Power_Financing_Electrifying_India_220210.pdf |url-status=dead }}</ref>
@@ Line 69: / Line 69: @@
 REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for €100M (approximately {{INR}}6000M) with [[KfW]] under Indo-German Development Cooperation for financing [[renewable energy]] power projects at concessional rates of interest. Eligible projects include solar, wind, small hydro, biomass power, and cogeneration power & hybrid projects
-GARV APP is an application developed and maintained by REC, 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 The mobile app is accessible to all stakeholders including the general public at large.
+GARV APP is an application developed and maintained by REC, 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 14 October 2015 The mobile app is accessible to all stakeholders including the general public at large.
 ===Finances===