Rec Ltd. (RECLTD)

Overview

REC Limited, originally known as Rural Electrification Corporation Limited, is a prominent public financial institution in India, dedicated to the funding of power generation, transmission, and distribution projects across the nation. The company, which was established in 1969, underwent a name change in October 2018 to REC Limited to reflect its broadening scope beyond rural electrification. Headquartered in Gurugram, India, REC operates under the Power Finance Corporation Limited as a subsidiary, positioning itself as a key player in India's energy sector. Its role extends beyond financing, as it also serves as a nodal agency for critical government initiatives aimed at enhancing electricity access and infrastructure, thus supporting India's journey towards comprehensive electrification and sustainable development.

Products and Services

• Long, Medium, and Short-term Loans

  REC Limited offers a variety of loan types catering to the financial needs of different power sector projects. These loans are designed to support the inception, execution, and completion phases of power generation, transmission, and distribution projects.

• Debt Refinancing and Equity Financing

  Offering financial solutions for restructuring existing debts and equity-based financing to empower companies within the power sector to optimize their capital structures and facilitate growth.

• Financing of Equipment Manufacturing (EM) for Power Sector and Coal Mines

  These specialized financial products are aimed at supporting the manufacturing of essential equipment for the power sector and coal mining operations, highlighting REC's commitment to bolstering the entire power value chain.

• Policy for Funding against Regulatory Assets

  REC Limited provides funding solutions against regulatory assets, offering a financial cushion to utilities awaiting tariff adjustments or regulatory approvals, ensuring their operations remain unaffected.

• Revolving Bill Payment Facility Services

  This facility is designed to streamline the payment processes for utilities, enabling them to manage cash flows more efficiently and maintain operational integrity.

• Implementation and Consultancy Services in Power Sector

  Besides its financial products, REC also offers a breadth of implementation and consultancy services, aiding in project planning, execution, and management within the power sector.

• Nodal Agency Role

  As a nodal agency, REC is instrumental in the implementation of key government schemes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), and National Electricity Fund. These initiatives are pivotal in improving electricity access and infrastructure across India.

• Bid Process Coordination

  REC Limited also acts as the bid process coordinator for selecting transmission service providers through tariff-based competitive bidding processes. This role underlines its involvement in enhancing India's transmission network efficiency and reliability through strategic project selection and financial oversight.