|REC CMD Rajeev Sharma|
RURAL Electrification Corporation Limited (REC), a Navratna PSU under ministry of power that finances power infrastructure projects is planning to enhance its presence in the green energy financing. The PSU will fund projects like solar, biomass, wind power that will help mitigate the problem of power scarcity, carbon emissions...and fuel supply. It was stated by Rajeev Sharma, chairman & managing director, REC while addressing the 45th annual general meeting (AGM) of shareholders recently. The PSU also aims to add 88537 MW generation capacity during eleventh five year plan.
REC has been funding power generation, transmission and distribution projects besides electrification of villages and pumpset energisation.
It continued to play an active role in creating new infrastructure and improving the existing one under the transmission and distribution network in the country, the CMD said in his address..
In line with the country’s objective to reduce the AT&C losses and provide electricity to all, the PSU has been laying special thrust in expansion and strengthening of existing transmission network and more importantly modernising of the distribution system by financing investment in transformers, meters, capacitors etc. and for conversion of Low Voltage Distribution to High Voltage Distribution System (HVDS).
During the financial year 2013-14, the total operating income of the PSU increased by 26 percent to Rs 17,017.98 crore from Rs 13,537.37 crore during the previous year. The profit after tax increased by 23 percent to Rs 4,683.70 crore from Rs 3,817.62 crore for the previous year.
In the coming years, REC will strive to strengthen its core financing activities and explore new business areas in the allied fields also like power equipment financing, energy efficiency related activities, equity financing, said the CMD. He added that REC is also planning to enhance its presence in the green energy financing, such as solar, biomass and wind power, which is likely to help in mitigating the problem of power scarcity, carbon emissions and fuel supply.With a net worth of Rs. 20,669.46 crore as on March 31, 2014, its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to state electricity boards, state government departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.