Untitled - Ministry of Power

Rural Electrification Corporation Ltd.
(REC)
Rural Electrification Corporation Limited (REC),
which is under the administrative control of the
Ministry of Power, Government of India, was
incorporated as a company under the Companies
Act, 1956, in the year 1969, with the main objective
of financing rural electrification schemes in the
country. Subsequently, in the year 1992, REC was
notified as a public financial institution under Section
4A of the Companies Act, 1956. In 1998. REC
was registered as a Non-Banking Financial
Company (NBFC) under Section 45 IA of the
RBI Act, 1934. The mandate/object clause of REC
was expanded in 2002-03 to include financing of
all projects including transmission and generation
without any restriction on population, geographical
location or size.
The current mission of REC is to facilitate availability
of electricity for accelerated growth and for
enrichment of the quality of life of rural and semiurban
population and to act as a competitive, clientfriendly
and development oriented organization for
Share Capital
The paid-up equity share capital of REC, as on
31st March, 2004, stood at Rs.780.60 crore
against the authorised share capital of Rs.1200
crore. There has been no additional subscription
to the equity share capital during the year 2003-04.
Chapter - 21.5
financing and promoting projects covering power
generation, power conservation, power
transmission and power distribution network in the
country. REC is thus endeavouring to promote and
finance projects aimed at integrated system
improvement, power generation, promotion of
decentralized and non-conventional energy
sources, energy conservation, renovation and
modernisation, power distribution with focus on
pumpsets energisation, rural households
electrification and other related works, and to
expand and diversify into other related areas and
activities for providing reliable supply
of power.
Highlights of Performance
Over the last seven years, REC has recorded
substantial growth in all key performance
parameters. During the year 2003-04, the profit
before tax has crossed Rs.800 crore mark for the
first time.
The highlights of performance of REC for the year 2003-04, alongwith the comparative figures for
the preceding four years, are given below:-
1999-2000 2000-01 2001-02 2002-03 2003-04
Loan sanctioned 4678 6308 6764 12125 15978
Loan Disbursed 3051 4109 4722 6607 6017
Recovery of Dues 2716 3582 4064 6673 5003
Resource Mobilisation 981 1611 3360 4213 4010
Profit before Tax 426 453 503 768 803
Profit after Tax 314 337 388 579 612
Networth 1892 2148 2466 2862 3264
Dividend 50 67 120 174 183
Dividend Tax 5.5 6.83 - 9.25 23.45
Business per employee 6.22 8.29 9.72 15.07 16.55
Mobilisation of Funds
Govt. of India continued to extend Capital Gains
Tax benefits under Section 54 EC of the Income
Tax Act, 1961 to Bonds floated by REC in addition
to the permission already granted for floating
Infrastructure Bonds under Section 88 of the
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