Top 10 Public Sector (PSU) Companies in India 2015
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9. Rural Electrification Limited
Rural Electrification Corporation Limited is a publicly owned infrastructure finance company in the power sector.
Image: company website
It is headquartered in New Delhi and finances and promotes rural electrification projects across India. It operates through a network of 13 Project offices and 5 Zonal offices.
It provides loans to enterprises like Central/State owned Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. REC is a Navratna company under the control of Ministry of Power. It is listed on both BSE as well as NSE.
The financing that is provided by the REC are as follows:
• Equipment finance
• Technical/financial appraisal of the project
• Project finance
• Short term or bridge loans
• Project monitoring, consultancy and advisory
REC was set up in July 1969 with the objective of helping the State Electricity Boards to provide power to the pump sets in order to boost agriculture that was plagued by deficiency in monsoons. Finance was also provided to speed up the pace of rural electrification. Till the year 2000, REC focussed mainly on transmission and distribution of power in semi-urban, rural and tribal/dalit areas. After the turn of the 21st century REC diversified into new and emerging areas in the power sector. Today, REC is a major player in power financing with strong presence in power generation, distribution and transmission.
REC has set up two subsidiaries that are wholly owned, namely, REC Transmission Projects Company Limited and REC Power Distribution Company Limited. They were set up in order to pursue new opportunities and challenges in power transmission and distribution. They also included in their purview consultancy and monitoring services as well.