REC- 1-51.p65 - Rural Electrification Corporation Ltd.

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crore and Fixed Assets of Rs.89.91 crore (including Capital
Work in Progress), Investments of Rs.909.86 crore,
Deferred Tax Asset of Rs.7.37 crore and balance of Rs.(-)
431.19 crore in Net Current Assets.
During the year 2009-10 an amount of Rs.3068.39 lacs was
written back to income as provision for Bad & Doubtful
Debts made in earlier years, which were no longer required
due to realisation / upgradation of Loan Assets.
6. DIRECTORS’ RESPONSIBILITY STATEMENT
With reference to Section 217 (2AA) of the Companies
Act,1956, it is confirmed as under : –
(i) that in the preparation of the Yearly Accounts for the
period ended 31.03.2010, the applicable Accounting
Standards had been followed and no material departures
have been made from the same;
(ii) that such accounting policies have been selected and
applied consistently and judgements and estimates made
that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company at the end
of the financial year and of the profit of the Company for
that period;
(iii) that proper and sufficient care is taken for the maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding
the assets of the Company and for preventing and detecting
fraud and other irregularities;
(iv) that the annual accounts have been prepared on a going
concern basis.
7. FINANCING ACTIVITIES
REC has been funding power generation, transmission &
distribution projects besides electrification of villages.
Various initiatives in this regard are enumerated below:
7.1 Generation
During the year 2009-10, the Company sanctioned 26 nos.
of generation / R&M loans including 5 nos. additional loan
assistance with total financial outlay of Rs.24031.32 crore,
Since 2002-03 and upto 31.03.2010, REC has sanctioned
financial assistance of Rs.103804 crore for R&M, thermal,
wind and hydro generation projects. REC has disbursed
Rs.8349 crore during 2009-10 against the on-going
generation projects.
The sector wise break up of loans sanctioned including
additional loan assistance is as below:
No. of Loans Loan Amount
(Rs. in crore)
STATE SECTOR
Fresh Loan 9 12282.37
Additional Loan 4
PRIVATE SECTOR
Fresh Loan 12 11749.95
Additional loan 1
Total : Fresh Loan+Additional Loan 21+5=26 24031.32
41st ANNUAL REPORT 2009-10
7.2 Transmission & Distribution
REC continued to play an active role in creating new
infrastructure and improving the existing ones under the
transmission and distribution network in the country
under its T&D portfolio. In line with the country’s objective
to provide power for all by the year 2012 and also reduce
the AT&C losses, REC has been financing schemes for
expansion and strengthening of the transmission network
and more importantly, modernizing of the distribution
system.
7.3 System Improvement & Bulk Loan
During the year 2009-10, a total of 289 system
improvement schemes and bulk loan schemes were
sanctioned involving a loan outlay of Rs.15421.64 crore.
This included: (i) 30 schemes involving a loan assistance
of Rs. 1177.75 crore for financing investment in the
distribution system by way of installation of essential
equipments like transformers, meters, capacitors etc. (ii)
29 schemes involving a loan assistance of Rs.1705.48 crore
for conversion of Low Voltage Distribution to High Voltage
Distribution System (HVDS), (iii) 122 schemes for
Rs.3466.33 crore for improving the distribution system,
and (iv) 108 schemes for Rs.9072.07 crore for improving
the transmission network.
7.4 Pumpset energization
During the year, 240020 electric irrigation pumpsets were
reported energized under REC financed schemes. 103 new
schemes for a loan assistance of Rs.964.74 crore were
sanctioned during the year under this category. The statewise
details and cumulative position up to 31.3.2010 are
given in the enclosed Table-5
7.5 Activities in North Eastern (NE) States
A loan assistance of Rs.30.83 crore was disbursed to the
NE states under T&D programme during the year 2009-10
as compared to Rs.25 crore during the previous year. 1
scheme for a loan assistance of Rs.32.54 crore was
sanctioned to Nagaland during 2009-10 under System
Improvement category.
8. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA
(RGGVY)
Government of India, in April 2005, launched the scheme
‘Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)–
Scheme of Rural Electricity Infrastructure and Household
Electrification’ for the attainment of the National Common
Minimum Programme (NCMP) goal of providing access
to electricity to all households in 5 years. The scheme is
being implemented through REC. Under the scheme 90%
capital subsidy is being provided by Govt. of India for
overall cost of the projects.
8.1 Electrification of villages and BPL Households
Initial approval was for implementation of Phase I of the
scheme for capital subsidy of Rs.5000 crore during X-Plan
period. 235 projects covering 180699 villages (68763 unelectrified
and 111936 electrified villages) with the total
sanctioned project cost of Rs. 9733 crore were sanctioned
for implementation by the Ministry of Power in X-Plan
period.